| Pennsylvania | |||||||
(State or other jurisdiction of incorporation or organization) | | | 6022 (Primary Standard Industrial Classification Code Number) | | | 23-2451943 (IRS Employer Identification No.) | |
| | |||||||
| Charles J. Ferry, Esq. (717) | | | | | | 120 Albany Street Plaza (732) 448-2548 | |
| Large accelerated filer | | | ☐ | | | | | | Accelerated filer | | | ☒ | |
| Non-accelerated filer | | | ☐ | | | (Do not check if a smaller reporting company) | | | Smaller reporting company | | | ☒ | |
| | | | | | | | | | Emerging growth company | | | ☐ | |
Calculation of Registration Fee | | ||||||||||||||||||||||||
Title of each class of securities to be registered | | | Amount to be registered(1) | | | Proposed maximum offering price per share | | | Proposed maximum aggregate offering price(2) | | | Amount of registration fee | | ||||||||||||
Common stock, $1.00 par value | | | | | 1,318,0621 | | | | | | N/A | | | | | $ | 17,443,789.86 | | | | | $ | 2,114.19 | | |
|
| | | |
| | | | |||||
| President and Chief Executive Officer | | | John C. Spier President and Chief Executive Officer Covenant Financial, Inc. | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | 32 | | | |
| | | | | 33 | | | |
| | | | | 33 | | | |
| | | | | 35 | | | |
| | | | | 37 | | | |
| | | | | 37 | | | |
| | | | | 39 | | | |
| | | | | | | ||
| | | | | 50 | | | |
| | | | | 52 | | | |
| | | | | | | ||
| | | | | 53 | | | |
| | | | | 55 | | | |
| | | | | 55 | | | |
| | | | | 55 | | | |
| | | | | 55 | | | |
| | | | | 56 | | | |
| | | | | 56 | | | |
| | | | | 56 | | | |
| | | | | | | ||
| | | | | 61 | | | |
| | | | | 61 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | 63 | | | |
| | | | | 64 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | 65 | | | |
| | | | | 66 | | | |
| | | | | 67 | | | |
| | | | | 69 | | | |
| | | | | 72 | | | |
| | | | | 72 | | |
| | | | | 77 | | | |
| | | | | 77 | | | |
| | | | | 77 | | | |
| | | | | 78 | | | |
| | | | | 78 | | | |
| | | | | 78 | | | |
| | | | | 78 | | | |
| | | | | | | ||
| | | | | 79 | | | |
| | | | | 79 | | | |
| | | | | 79 | | | |
| | | | | 81 | | | |
| | | | | 81 | | | |
| | | | | 81 | | | |
| | | | | 81 | | | |
| | | | | 81 | | | |
| | | | | 81 | | | |
| | | | | 82 | |||
| | |||||||
| | | | | 84 | | | |
| | | | | 84 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| ||||||||
| | | | A-1 | | | ||
| | | | | B-1 | | | |
| | | | | C-1 | | |
| | | Historical Price Per Share | | | Pro Forma Equivalent Price Per Share(1) | | ||||||
C&N Common Stock | | | | | | | | | | | | | |
Closing Price on September 27, 2018 | | | | $ | 26.02 | | | | | | N/A | | |
Closing Price on [LPD] | | | | | | | | | | | N/A | | |
Monument Common Stock | | | | | | | | | | | | | |
Closing Price on September 27, 2018 | | | | $ | 22.04(2) | | | | | $ | 26.39 | | |
Closing Price on July 18, 2018 | | | | $ | 22.04(2) | | | | | | | | |
| | | Historical Price Per Share | | | Pro Forma Equivalent Price Per Share(1) | | ||||||
C&N Common Stock | | | | | | | | | | | | | |
Closing Price on December 17, 2019 | | | | $ | 27.09 | | | | | | N/A | | |
Closing Price on April 17, 2020 | | | | $ | 18.40 | | | | | | N/A | | |
Covenant Common Stock | | | | | | | | | | | | | |
Equivalent Pro Forma Price on December 17, 2019 | | | | $ | 9.56(2) | | | | | $ | 16.83 | | |
Equivalent Pro Forma Price on April 17, 2020 | | | | $ | 9.56(2) | | | | | $ | 11.43 | | |
(In thousands of dollars, except per share data) | | | As of or for the Nine Months Ended September 30, | | | As of or for the Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
INCOME STATEMENT | | | 2018 | | | 2017 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | |||||||||||||||||||||
Interest and fee income | | | | $ | 37,024 | | | | | $ | 34,078 | | | | | $ | 45,863 | | | | | $ | 44,098 | | | | | $ | 44,519 | | | | | $ | 46,009 | | | | | $ | 48,914 | | |
Interest expense | | | | | 3,313 | | | | | | 2,916 | | | | | | 3,915 | | | | | | 3,693 | | | | | | 4,602 | | | | | | 5,122 | | | | | | 5,765 | | |
Net interest income | | | | | 33,711 | | | | | | 31,162 | | | | | | 41,948 | | | | | | 40,405 | | | | | | 39,917 | | | | | | 40,887 | | | | | | 43,149 | | |
Provision for loan losses | | | | | 332 | | | | | | 778 | | | | | | 801 | | | | | | 1,221 | | | | | | 845 | | | | | | 476 | | | | | | 2,047 | | |
Net interest income after provision for loan losses | | | | | 33,379 | | | | | | 30,384 | | | | | | 41,147 | | | | | | 39,184 | | | | | | 39,072 | | | | | | 40,411 | | | | | | 41,102 | | |
Noninterest income excluding securities gains | | | | | 13,557 | | | | | | 12,036 | | | | | | 16,153 | | | | | | 15,511 | | | | | | 15,478 | | | | | | 15,420 | | | | | | 16,451 | | |
Net gains on securities | | | | | 2,037 | | | | | | 257 | | | | | | 257 | | | | | | 1,158 | | | | | | 2,861 | | | | | | 1,104 | | | | | | 1,718 | | |
Loss on prepayment of debt | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 2,573 | | | | | | 0 | | | | | | 1,023 | | |
Noninterest expense excluding loss on prepayment of debt | | | | | 29,412 | | | | | | 27,566 | | | | | | 36,967 | | | | | | 34,744 | | | | | | 33,030 | | | | | | 34,157 | | | | | | 33,471 | | |
Income before income tax provision | | | | | 19,561 | | | | | | 15,111 | | | | | | 20,590 | | | | | | 21,109 | | | | | | 21,808 | | | | | | 22,778 | | | | | | 24,777 | | |
Income tax provision | | | | | 3,229 | | | | | | 3,620 | | | | | | 7,156 | | | | | | 5,347 | | | | | | 5,337 | | | | | | 5,692 | | | | | | 6,183 | | |
Net income | | | | $ | 16,332 | | | | | $ | 11,491 | | | | | $ | 13,434 | | | | | $ | 15,762 | | | | | $ | 16,471 | | | | | $ | 17,086 | | | | | $ | 18,594 | | |
Net income attributable to common shares | | | | $ | 16,249 | | | | | $ | 11,432 | | | | | $ | 13,365 | | | | | $ | 15,677 | | | | | $ | 16,387 | | | | | $ | 17,009 | | | | | $ | 18,490 | | |
PER COMMON SHARE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | | | $ | 1.33 | | | | | $ | 0.94 | | | | | $ | 1.10 | | | | | $ | 1.30 | | | | | $ | 1.35 | | | | | $ | 1.38 | | | | | $ | 1.51 | | |
Diluted earnings per share | | | | $ | 1.33 | | | | | $ | 0.94 | | | | | $ | 1.10 | | | | | $ | 1.30 | | | | | $ | 1.35 | | | | | $ | 1.38 | | | | | $ | 1.50 | | |
Cash dividends declared per share | | | | $ | 0.81 | | | | | $ | 0.78 | | | | | $ | 1.04 | | | | | $ | 1.04 | | | | | $ | 1.04 | | | | | $ | 1.04 | | | | | $ | 1.00 | | |
Book value per common share at period-end | | | | $ | 15.45 | | | | | $ | 15.66 | | | | | $ | 15.43 | | | | | $ | 15.36 | | | | | $ | 15.39 | | | | | $ | 15.34 | | | | | $ | 14.49 | | |
Tangible book value per common share at period-end | | | | $ | 14.48 | | | | | $ | 14.68 | | | | | $ | 14.45 | | | | | $ | 14.37 | | | | | $ | 14.41 | | | | | $ | 14.36 | | | | | $ | 13.51 | | |
Weighted average common shares outstanding – basic | | | | | 12,209,879 | | | | | | 12,105,673 | | | | | | 12,115,840 | | | | | | 12,032,820 | | | | | | 12,149,252 | | | | | | 12,333,933 | | | | | | 12,283,426 | | |
Weighted average common shares outstanding – diluted | | | | | 12,248,669 | | | | | | 12,146,297 | | | | | | 12,155,136 | | | | | | 12,063,055 | | | | | | 12,171,084 | | | | | | 12,355,916 | | | | | | 12,313,833 | | |
END OF PERIOD BALANCES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale securities | | | | $ | 358,706 | | | | | $ | 365,086 | | | | | $ | 356,908 | | | | | $ | 395,077 | | | | | $ | 420,290 | | | | | $ | 516,807 | | | | | $ | 482,658 | | |
Gross loans | | | | | 822,513 | | | | | | 801,012 | | | | | | 815,713 | | | | | | 751,835 | | | | | | 704,880 | | | | | | 630,545 | | | | | | 644,303 | | |
Allowance for loan losses | | | | | 8,815 | | | | | | 8,900 | | | | | | 8,856 | | | | | | 8,473 | | | | | | 7,889 | | | | | | 7,336 | | | | | | 8,663 | | |
Total assets | | | | | 1,285,439 | | | | | | 1,259,921 | | | | | | 1,276,959 | | | | | | 1,242,292 | | | | | | 1,223,417 | | | | | | 1,241,963 | | | | | | 1,237,695 | | |
Deposits | | | | | 1,043,947 | | | | | | 1,021,625 | | | | | | 1,008,449 | | | | | | 983,843 | | | | | | 935,615 | | | | | | 967,989 | | | | | | 954,516 | | |
Borrowings | | | | | 41,406 | | | | | | 38,995 | | | | | | 70,955 | | | | | | 64,629 | | | | | | 92,263 | | | | | | 78,597 | | | | | | 96,723 | | |
Stockholders’ equity | | | | | 189,987 | | | | | | 191,013 | | | | | | 188,443 | | | | | | 186,008 | | | | | | 187,487 | | | | | | 188,362 | | | | | | 179,472 | | |
Common shares outstanding | | | | | 12,297,274 | | | | | | 12,197,527 | | | | | | 12,214,525 | | | | | | 12,113,228 | | | | | | 12,180,623 | | | | | | 12,279,980 | | | | | | 12,390,063 | | |
(In thousands of dollars, except per share data) INCOME STATEMENT | | | As of or for the Year Ended December 31, | | |||||||||||||||||||||||||||
| 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | |||||||||||||||||
Interest and fee income | | | | $ | 64,771 | | | | | $ | 50,328 | | | | | $ | 45,863 | | | | | $ | 44,098 | | | | | $ | 44,519 | | |
Interest expense | | | | | 10,283 | | | | | | 4,625 | | | | | | 3,915 | | | | | | 3,693 | | | | | | 4,602 | | |
Net interest income | | | | | 54,488 | | | | | | 45,703 | | | | | | 41,948 | | | | | | 40,405 | | | | | | 39,917 | | |
Provision for loan losses | | | | | 849 | | | | | | 584 | | | | | | 801 | | | | | | 1,221 | | | | | | 845 | | |
Net interest income after provision for loan losses | | | | | 53,639 | | | | | | 45,119 | | | | | | 41,147 | | | | | | 39,184 | | | | | | 39,072 | | |
Noninterest income excluding securities gains | | | | | 19,284 | | | | | | 18,597 | | | | | | 16,153 | | | | | | 15,511 | | | | | | 15,478 | | |
Net gains on securities | | | | | 23 | | | | | | 2,033 | | | | | | 257 | | | | | | 1,158 | | | | | | 2,861 | | |
Loss on prepayment of debt | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 2,573 | | |
Merger-related expenses | | | | | 4,099 | | | | | | 328 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Noninterest expense excluding loss on prepayment of debt and merger-related expenses | | | | | 45,438 | | | | | | 39,158 | | | | | | 36,967 | | | | | | 34,744 | | | | | | 33,030 | | |
Income before income tax provision | | | | | 23,409 | | | | | | 26,263 | | | | | | 20,590 | | | | | | 21,109 | | | | | | 21,808 | | |
Income tax provision | | | | | 3,905 | | | | | | 4,250 | | | | | | 7,156 | | | | | | 5,347 | | | | | | 5,337 | | |
Net income | | | | $ | 19,504 | | | | | $ | 22,013 | | | | | $ | 13,434 | | | | | $ | 15,762 | | | | | $ | 16,471 | | |
Net income attributable to common shares | | | | $ | 19,404 | | | | | $ | 21,903 | | | | | $ | 13,365 | | | | | $ | 15,677 | | | | | $ | 16,387 | | |
PER COMMON SHARE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | | | $ | 1.46 | | | | | $ | 1.79 | | | | | $ | 1.10 | | | | | $ | 1.30 | | | | | $ | 1.35 | | |
Diluted earnings per share | | | | $ | 1.46 | | | | | $ | 1.79 | | | | | $ | 1.10 | | | | | $ | 1.30 | | | | | $ | 1.35 | | |
Cash dividends declared per share | | | | $ | 1.18 | | | | | $ | 1.08 | | | | | $ | 1.04 | | | | | $ | 1.04 | | | | | $ | 1.04 | | |
Book value per common share at period-end | | | | $ | 17.82 | | | | | $ | 16.02 | | | | | $ | 15.43 | | | | | $ | 15.36 | | | | | $ | 15.39 | | |
Tangible book value per common share at period-end | | | | $ | 15.66 | | | | | $ | 15.05 | | | | | $ | 14.45 | | | | | $ | 14.37 | | | | | $ | 14.41 | | |
Weighted average common shares outstanding — basic | | | | | 13,298,736 | | | | | | 12,219,209 | | | | | | 12,115,840 | | | | | | 12,032,820 | | | | | | 12,149,252 | | |
Weighted average common shares outstanding — diluted | | | | | 13,321,559 | | | | | | 12,257,368 | | | | | | 12,155,136 | | | | | | 12,063,055 | | | | | | 12,171,084 | | |
(In thousands of dollars, except per share data) | | | As of or for the Nine Months Ended September 30, | | | As of or for the Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
INCOME STATEMENT | | | 2018 | | | 2017 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | |||||||||||||||||||||
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,272,867 | | | | | $ | 1,243,448 | | | | | $ | 1,247,759 | | | | | $ | 1,229,866 | | | | | $ | 1,243,209 | | | | | $ | 1,239,897 | | | | | $ | 1,237,096 | | |
Earning assets | | | | | 1,201,263 | | | | | | 1,164,974 | | | | | | 1,169,569 | | | | | | 1,147,549 | | | | | | 1,159,298 | | | | | | 1,155,401 | | | | | | 1,145,340 | | |
Gross loans | | | | | 820,958 | | | | | | 773,138 | | | | | | 780,640 | | | | | | 723,076 | | | | | | 657,727 | | | | | | 627,753 | | | | | | 656,495 | | |
Deposits | | | | | 1,024,735 | | | | | | 985,961 | | | | | | 990,917 | | | | | | 970,447 | | | | | | 968,201 | | | | | | 965,418 | | | | | | 964,031 | | |
Stockholders’ equity | | | | | 187,056 | | | | | | 188,448 | | | | | | 188,958 | | | | | | 188,373 | | | | | | 188,905 | | | | | | 185,469 | | | | | | 181,412 | | |
KEY RATIOS | | | | | | | | | |||||||||||||||||||||||||||||||||||
Return on average assets (annualized) | | | | | 1.71% | | | | | | 1.23% | | | | | | 1.08% | | | | | | 1.28% | | | | | | 1.32% | | | | | | 1.38% | | | | | | 1.50% | | |
Return on average equity (annualized) | | | | | 11.64% | | | | | | 8.13% | | | | | | 7.11% | | | | | | 8.37% | | | | | | 8.72% | | | | | | 9.21% | | | | | | 10.25% | | |
Average equity to average assets | | | | | 14.70% | | | | | | 15.16% | | | | | | 15.14% | | | | | | 15.32% | | | | | | 15.19% | | | | | | 14.96% | | | | | | 14.66% | | |
Net interest margin(1) | | | | | 3.87% | | | | | | 3.86% | | | | | | 3.82% | | | | | | 3.76% | | | | | | 3.69% | | | | | | 3.80% | | | | | | 4.05% | | |
Efficiency(2) | | | | | 60.96% | | | | | | 60.88% | | | | | | 60.74% | | | | | | 59.22% | | | | | | 56.66% | | | | | | 57.59% | | | | | | 53.27% | | |
Cash dividends as a % of diluted earnings per share | | | | | 60.90% | | | | | | 82.98% | | | | | | 94.55% | | | | | | 80.00% | | | | | | 77.04% | | | | | | 75.36% | | | | | | 66.67% | | |
Tier 1 leverage | | | | | 14.50% | | | | | | 14.40% | | | | | | 14.23% | | | | | | 14.27% | | | | | | 14.31% | | | | | | 13.89% | | | | | | 13.78% | | |
Tier 1 risk-based capital | | | | | 22.76% | | | | | | 22.42% | | | | | | 21.95% | | | | | | 22.48% | | | | | | 23.29% | | | | | | 26.26% | | | | | | 25.15% | | |
Total risk-based capital | | | | | 23.88% | | | | | | 23.57% | | | | | | 23.07% | | | | | | 23.60% | | | | | | 24.40% | | | | | | 27.60% | | | | | | 26.60% | | |
Tangible common equity/tangible assets | | | | | 13.98% | | | | | | 14.35% | | | | | | 13.95% | | | | | | 14.15% | | | | | | 14.49% | | | | | | 14.34% | | | | | | 13.66% | | |
Nonperforming assets/total assets | | | | | 1.30% | | | | | | 1.35% | | | | | | 1.47% | | | | | | 1.43% | | | | | | 1.31% | | | | | | 1.34% | | | | | | 1.53% | | |
Nonperforming loans/total loans | | | | | 1.71% | | | | | | 1.92% | | | | | | 2.10% | | | | | | 2.07% | | | | | | 2.09% | | | | | | 2.45% | | | | | | 2.80% | | |
Allowance for loan losses/total loans | | | | | 1.07% | | | | | | 1.11% | | | | | | 1.09% | | | | | | 1.13% | | | | | | 1.12% | | | | | | 1.16% | | | | | | 1.34% | | |
Net charge-offs/average loans (annualized) | | | | | 0.06% | | | | | | 0.06% | | | | | | 0.05% | | | | | | 0.09% | | | | | | 0.04% | | | | | | 0.29% | | | | | | 0.04% | | |
(In thousands of dollars, except per share data) INCOME STATEMENT | | | As of or for the Year Ended December 31, | | |||||||||||||||||||||||||||
| 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | |||||||||||||||||
END OF PERIOD BALANCES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale debt securities | | | | $ | 346,723 | | | | | $ | 363,273 | | | | | $ | 355,937 | | | | | $ | 394,106 | | | | | $ | 417,904 | | |
Gross loans | | | | | 1,182,222 | | | | | | 827,563 | | | | | | 815,713 | | | | | | 751,835 | | | | | | 704,880 | | |
Allowance for loan losses | | | | | 9,836 | | | | | | 9,309 | | | | | | 8,856 | | | | | | 8,473 | | | | | | 7,889 | | |
Total assets | | | | | 1,654,145 | | | | | | 1,290,893 | | | | | | 1,276,959 | | | | | | 1,242,292 | | | | | | 1,223,417 | | |
Deposits | | | | | 1,252,660 | | | | | | 1,033,772 | | | | | | 1,008,449 | | | | | | 983,843 | | | | | | 935,615 | | |
Borrowings and subordinated debt | | | | | 144,847 | | | | | | 48,768 | | | | | | 70,955 | | | | | | 64,629 | | | | | | 92,263 | | |
Stockholders’ equity | | | | | 244,452 | | | | | | 197,368 | | | | | | 188,443 | | | | | | 186,008 | | | | | | 187,487 | | |
Common shares outstanding | | | | | 13,716,445 | | | | | | 12,319,330 | | | | | | 12,214,525 | | | | | | 12,113,228 | | | | | | 12,180,623 | | |
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,540,469 | | | | | $ | 1,276,140 | | | | | $ | 1,247,759 | | | | | $ | 1,229,866 | | | | | $ | 1,243,209 | | |
Earning assets | | | | | 1,437,993 | | | | | | 1,205,429 | | | | | | 1,169,569 | | | | | | 1,147,549 | | | | | | 1,159,298 | | |
Gross loans | | | | | 1,057,559 | | | | | | 822,346 | | | | | | 780,640 | | | | | | 723,076 | | | | | | 657,727 | | |
Deposits | | | | | 1,213,687 | | | | | | 1,027,831 | | | | | | 990,917 | | | | | | 970,447 | | | | | | 968,201 | | |
Stockholders’ equity | | | | | 229,446 | | | | | | 187,895 | | | | | | 188,958 | | | | | | 188,373 | | | | | | 188,905 | | |
KEY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | | | 1.27% | | | | | | 1.72% | | | | | | 1.08% | | | | | | 1.28% | | | | | | 1.32% | | |
Return on average equity | | | | | 8.50% | | | | | | 11.72% | | | | | | 7.11% | | | | | | 8.37% | | | | | | 8.72% | | |
Average equity to average assets | | | | | 14.89% | | | | | | 14.72% | | | | | | 15.14% | | | | | | 15.32% | | | | | | 15.19% | | |
Net interest margin(1) | | | | | 3.86% | | | | | | 3.90% | | | | | | 3.82% | | | | | | 3.76% | | | | | | 3.69% | | |
Efficiency(2) | | | | | 60.73% | | | | | | 59.69% | | | | | | 60.74% | | | | | | 59.22% | | | | | | 56.66% | | |
Cash dividends as a % of diluted earnings per share | | | | | 80.82% | | | | | | 60.34% | | | | | | 94.55% | | | | | | 80.00% | | | | | | 77.04% | | |
Tier 1 leverage | | | | | 13.10% | | | | | | 14.78% | | | | | | 14.23% | | | | | | 14.27% | | | | | | 14.31% | | |
Tier 1 risk-based capital | | | | | 19.19% | | | | | | 23.24% | | | | | | 21.95% | | | | | | 22.48% | | | | | | 23.29% | | |
Total risk-based capital | | | | | 20.70% | | | | | | 24.42% | | | | | | 23.07% | | | | | | 23.60% | | | | | | 24.40% | | |
Tangible common equity/tangible assets | | | | | 13.22% | | | | | | 14.50% | | | | | | 13.95% | | | | | | 14.15% | | | | | | 14.49% | | |
Nonperforming assets/total assets | | | | | 0.80% | | | | | | 1.37% | | | | | | 1.47% | | | | | | 1.43% | | | | | | 1.31% | | |
Nonperforming loans/total loans | | | | | 0.88% | | | | | | 1.94% | | | | | | 2.10% | | | | | | 2.07% | | | | | | 2.09% | | |
Allowance for loan losses/ total loans | | | | | 0.83% | | | | | | 1.12% | | | | | | 1.09% | | | | | | 1.13% | | | | | | 1.12% | | |
Net charge-offs/average loans | | | | | 0.03% | | | | | | 0.02% | | | | | | 0.05% | | | | | | 0.09% | | | | | | 0.04% | | |
| | | At or For the Nine Months Ended September 30, | | | At or For the Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(In Thousands, Except per Share Information) | | | 2018 | | | 2017 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | |||||||||||||||||||||
Summary of Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and dividend income | | | | $ | 10,859 | | | | | $ | 9,223 | | | | | $ | 12,542 | | | | | $ | 11,161 | | | | | $ | 9,880 | | | | | $ | 9,522 | | | | | $ | 8,108 | | |
Interest expense | | | | | 3,721 | | | | | | 2,698 | | | | | | 3,756 | | | | | | 3,130 | | | | | | 2,643 | | | | | | 2,562 | | | | | | 2,309 | | |
Net interest income | | | | | 7,138 | | | | | | 6,525 | | | | | | 8,786 | | | | | | 8,031 | | | | | | 7,237 | | | | | | 6,960 | | | | | | 5,799 | | |
Provision for loan losses | | | | | 395 | | | | | | 200 | | | | | | 290 | | | | | | (54) | | | | | | 645 | | | | | | 633 | | | | | | 242 | | |
Net interest income after provision for loan losses | | | | | 6,743 | | | | | | 6,325 | | | | | | 8,496 | | | | | | 8,085 | | | | | | 6,592 | | | | | | 6,326 | | | | | | 5,557 | | |
Investment securities gains | | | | | 730 | | | | | | 11 | | | | | | 11 | | | | | | 154 | | | | | | 351 | | | | | | 1,041 | | | | | | 618 | | |
Noninterest income | | | | | 100 | | | | | | 111 | | | | | | 143 | | | | | | 517 | | | | | | 957 | | | | | | 919 | | | | | | 1,023 | | |
Noninterest expenses | | | | | 5,356 | | | | | | 4,528 | | | | | | 6,297 | | | | | | 6,867 | | | | | | 6,474 | | | | | | 6,166 | | | | | | 5,706 | | |
Income before income tax expense (benefit) | | | | | 2,217 | | | | | | 1,920 | | | | | | 2,353 | | | | | | 1,889 | | | | | | 1,426 | | | | | | 2,120 | | | | | | 1,492 | | |
Income tax expense | | | | | 380 | | | | | | 458 | | | | | | 670 | | | | | | 384 | | | | | | 202 | | | | | | 356 | | | | | | 184 | | |
Net income | | | | | 1,837 | | | | | | 1,461 | | | | | | 1,682 | | | | | | 1,505 | | | | | | 1,224 | | | | | | 1,764 | | | | | | 1,308 | | |
Dividend on perferred stock | | | | | — | | | | | | 85 | | | | | | 85 | | | | | | 255 | | | | | | 30 | | | | | | 30 | | | | | | 30 | | |
Income available to common stockholders | | | | $ | 1,837 | | | | | $ | 1,376 | | | | | $ | 1,597 | | | | | $ | 1,250 | | | | | $ | 1,194 | | | | | $ | 1,734 | | | | | $ | 1,278 | | |
Per Share Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | | | $ | 1.20 | | | | | $ | 1.02 | | | | | $ | 1.19 | | | | | $ | 0.94 | | | | | $ | 0.92 | | | | | $ | 1.37 | | | | | $ | 1.01 | | |
Diluted earnings per share | | | | | 1.18 | | | | | | 0.92 | | | | | | 1.09 | | | | | | 0.84 | | | | | | 0.82 | | | | | | 1.24 | | | | | | 0.92 | | |
Book value at period end | | | | | 16.70 | | | | | | 17.33 | | | | | | 16.88 | | | | | | 15.93 | | | | | | 15.39 | | | | | | 15.01 | | | | | | 12.30 | | |
Weighted average shares outstanding basic | | | | | 1,531 | | | | | | 1,343 | | | | | | 1,345 | | | | | | 1,332 | | | | | | 1,300 | | | | | | 1,267 | | | | | | 1,267 | | |
Weighted average shares outstanding diluted | | | | | 1,555 | | | | | | 1,493 | | | | | | 1,469 | | | | | | 1,485 | | | | | | 1,454 | | | | | | 1,404 | | | | | | 1,395 | | |
Period-End Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 361,267 | | | | | $ | 320,817 | | | | | $ | 325,903 | | | | | $ | 289,254 | | | | | $ | 269,894 | | | | | $ | 250,041 | | | | | $ | 251,364 | | |
Loans | | | | | 250,325 | | | | | | 230,448 | | | | | | 238,929 | | | | | | 209,687 | | | | | | 186,272 | | | | | | 153,528 | | | | | | 126,726 | | |
Total investment securities | | | | | 97,577 | | | | | | 74,097 | | | | | | 72,810 | | | | | | 66,065 | | | | | | 72,295 | | | | | | 77,739 | | | | | | 112,110 | | |
Deposits – noninterest-bearing | | | | | 23,293 | | | | | | 25,627 | | | | | | 25,054 | | | | | | 22,300 | | | | | | 15,850 | | | | | | 14,083 | | | | | | 11,191 | | |
Deposits – interest-bearing | | | | | 232,096 | | | | | | 177,005 | | | | | | 183,839 | | | | | | 169,664 | | | | | | 162,289 | | | | | | 156,369 | | | | | | 154,281 | | |
Total deposits | | | | | 255,389 | | | | | | 202,632 | | | | | | 208,893 | | | | | | 191,965 | | | | | | 178,139 | | | | | | 170,451 | | | | | | 165,472 | | |
Borrowings | | | | | 66,308 | | | | | | 81,104 | | | | | | 80,492 | | | | | | 66,863 | | | | | | 62,252 | | | | | | 51,207 | | | | | | 61,432 | | |
Subordinated debt | | | | | 12,239 | | | | | | 12,203 | | | | | | 12,212 | | | | | | 5,330 | | | | | | 5,323 | | | | | | 5,316 | | | | | | 5,310 | | |
Total stockholders’ equity | | | | | 26,134 | | | | | | 23,277 | | | | | | 23,507 | | | | | | 24,352 | | | | | | 23,451 | | | | | | 21,980 | | | | | | 18,543 | | |
Financial Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity to total assets | | | | | 7.23% | | | | | | 7.26% | | | | | | 7.21% | | | | | | 8.42% | | | | | | 8.69% | | | | | | 8.79% | | | | | | 7.38% | | |
Average equity/average assets | | | | | 7.13% | | | | | | 7.71% | | | | | | 7.61% | | | | | | 8.43% | | | | | | 8.93% | | | | | | 7.94% | | | | | | 8.18% | | |
Return on average equity | | | | | 9.51% | | | | | | 8.17% | | | | | | 7.07% | | | | | | 6.27% | | | | | | 5.33% | | | | | | 8.46% | | | | | | 6.93% | | |
Return on average assets | | | | | 0.73% | | | | | | 0.63% | | | | | | 0.54% | | | | | | 0.53% | | | | | | 0.48% | | | | | | 0.67% | | | | | | 0.57% | | |
Capital Ratios(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital to risk weighted assets | | | | | 15.60% | | | | | | 15.98% | | | | | | 15.67% | | | | | | 15.03% | | | | | | 14.47% | | | | | | 15.22% | | | | | | 16.73% | | |
Tier 1 capital to risk weighted assets | | | | | 12.50% | | | | | | 12.57% | | | | | | 12.32% | | | | | | 11.40% | | | | | | 10.88% | | | | | | 11.32% | | | | | | 12.32% | | |
Common equity tier 1 capital to risk weighted assets | | | | | 12.50% | | | | | | 12.57% | | | | | | 12.32% | | | | | | 9.99% | | | | | | 9.45% | | | | | | n/a | | | | | | n/a | | |
Tier 1 capital to average assets | | | | | 9.18% | | | | | | 9.15% | | | | | | 9.05% | | | | | | 8.37% | | | | | | 8.42% | | | | | | 8.09% | | | | | | 7.76% | | |
| | | As of or for the Years Ended December 31, | | |||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | | 2016(1) | | | 2015(1) | | |||||||||||||||
| | | (in thousands of dollars, except per share data) | | | | | | | | |||||||||||||||||||||
Interest income | | | | $ | 23,732 | | | | | $ | 21,766 | | | | | $ | 17,897 | | | | | $ | 12,734 | | | | | $ | 10,390 | | |
Interest expense | | | | | 7,226 | | | | | | 6,247 | | | | | | 3,867 | | | | | | 2,119 | | | | | | 1,196 | | |
Net interest income | | | | | 16,506 | | | | | | 15,519 | | | | | | 14,030 | | | | | | 10,615 | | | | | | 9,194 | | |
Provision for loan losses | | | | | 460 | | | | | | 2,931 | | | | | | 2,636 | | | | | | 4,416 | | | | | | 1,455 | | |
Net interest income after provision for loan losses | | | | | 16,046 | | | | | | 12,588 | | | | | | 11,394 | | | | | | 6,199 | | | | | | 7,739 | | |
Noninterest income | | | | | 649 | | | | | | 653 | | | | | | 720 | | | | | | 1,040 | | | | | | 649 | | |
Noninterest expenses | | | | | 12,272 | | | | | | 10,523 | | | | | | 10,967 | | | | | | 9,861 | | | | | | 7,586 | | |
Income (loss) before income tax expense | | | | | 4,423 | | | | | | 2,718 | | | | | | 1,147 | | | | | | (2,622) | | | | | | 802 | | |
Income tax expense (benefit) | | | | | 861 | | | | | | 566 | | | | | | 769 | | | | | | (994) | | | | | | 204 | | |
Net income (loss) | | | | | 3,562 | | | | | | 2,152 | | | | | | 378 | | | | | | (1,628) | | | | | | 598 | | |
Less: dividends on preferred stock | | | | | — | | | | | | — | | | | | | — | | | | | | 181 | | | | | | 51 | | |
Net income (loss) attributable to common stockholders | | | | $ | 3,562 | | | | | $ | 2,152 | | | | | $ | 378 | | | | | $ | (1,809) | | | | | $ | 547 | | |
Basic earnings per share | | | | $ | 0.81 | | | | | $ | 0.50 | | | | | $ | 0.12 | | | | | $ | (0.70) | | | | | $ | 0.21 | | |
Diluted earnings per share | | | | | 0.79 | | | | | | 0.50 | | | | | | 0.12 | | | | | | (0.70) | | | | | | 0.20 | | |
Cash dividends per share(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Basic weighted average common shares outstanding | | | | | 4,400,342 | | | | | | 4,292,303 | | | | | | 3,047,144 | | | | | | 2,599,638 | | | | | | 2,575,271 | | |
Diluted weighted average common shares outstanding | | | | | 4,527,193 | | | | | | 4,292,509 | | | | | | 3,092,154 | | | | | | 2,700,939 | | | | | | 2,705,803 | | |
Selected Financial Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 515,968 | | | | | $ | 479,357 | | | | | $ | 446,654 | | | | | $ | 354,710 | | | | | $ | 263,055 | | |
Total loans | | | | | 421,146 | | | | | | 399,474 | | | | | | 376,298 | | | | | | 293,787 | | | | | | 202,414 | | |
Allowance for loan losses | | | | | (3,963) | | | | | | (4,584) | | | | | | (4,673) | | | | | | (6,530) | | | | | | (2,763) | | |
Total deposits | | | | | 393,445 | | | | | | 361,919 | | | | | | 345,478 | | | | | | 276,383 | | | | | | 192,579 | | |
Total borrowings and debt | | | | | 64,000 | | | | | | 66,500 | | | | | | 54,900 | | | | | | 48,200 | | | | | | 31,900 | | |
Total subordinated debt | | | | | 10,000 | | | | | | 10,000 | | | | | | 10,000 | | | | | | 8,000 | | | | | | — | | |
Preferred stock(3) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,100 | | |
Total stockholders’ equity | | | | | 42,078 | | | | | | 38,123 | | | | | | 33,768 | | | | | | 20,579 | | | | | | 27,383 | | |
Average total assets | | | | | 493,754 | | | | | | 475,523 | | | | | | 402,945 | | | | | | 288,359 | | | | | | 231,704 | | |
Average stockholders’ equity | | | | | 40,267 | | | | | | 35,462 | | | | | | 24,849 | | | | | | 22,836 | | | | | | 27,305 | | |
| | | As of or for the Years Ended December 31, | | |||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | | 2016(1) | | | 2015(1) | | |||||||||||||||
| | | (in thousands of dollars, except per share data) | | | | | | | | |||||||||||||||||||||
Selected Financial Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | | | 0.72% | | | | | | 0.45% | | | | | | 0.09% | | | | | | -0.63% | | | | | | 0.24% | | |
Return on average equity | | | | | 8.85% | | | | | | 6.07% | | | | | | 1.52% | | | | | | -7.92% | | | | | | 2.00% | | |
Tier 1 (Core) capital/average assets — Bank | | | | | 10.33% | | | | | | 10.06% | | | | | | 10.12% | | | | | | 9.13% | | | | | | 11.08% | | |
(In Thousands) | | | C&N Historical | | | Monument Historical | | | Pro Forma Adjustments | | | Pro Forma Combined | | | Note Reference | | |||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | | | $ | 20,978 | | | | | $ | 1,660 | | | | | | | | | | | $ | 22,638 | | | | | | | | |
Interest-bearing | | | | | 17,363 | | | | | | 219 | | | | | | | | | | | | 17,582 | | | | | | | | |
Total cash and cash equivalents | | | | | 38,341 | | | | | | 1,879 | | | | | | 0 | | | | | | 40,220 | | | | | | | | |
Held-to-maturity securities | | | | | 0 | | | | | | 1,250 | | | | | | | | | | | | 1,250 | | | | | | | | |
Available-for-sale debt securities, at fair value | | | | | 358,706 | | | | | | 96,327 | | | | | | (13,191) | | | | | | 441,842 | | | | | | (1) | | |
Marketable equity security | | | | | 941 | | | | | | 0 | | | | | | | | | | | | 941 | | | | | | | | |
Federal funds sold | | | | | 0 | | | | | | 741 | | | | | | | | | | | | 741 | | | | | | | | |
Loans held for sale | | | | | 551 | | | | | | 0 | | | | | | | | | | | | 551 | | | | | | | | |
Loans receivable | | | | | 822,532 | | | | | | 253,060 | | | | | | (2,735) | | | | | | 1,072,857 | | | | | | | | |
Allowance for loan losses | | | | | (8,815) | | | | | | (2,735) | | | | | | 2,735 | | | | | | (8,815) | | | | | | | | |
Loans, net | | | | | 813,717 | | | | | | 250,325 | | | | | | 0 | | | | | | 1,064,042 | | | | | | (2) | | |
Bank-owned life insurance | | | | | 18,935 | | | | | | 0 | | | | | | | | | | | | 18,935 | | | | | | | | |
Accrued interest receivable | | | | | 4,279 | | | | | | 1,446 | | | | | | | | | | | | 5,725 | | | | | | | | |
Bank premises and equipment, net | | | | | 14,824 | | | | | | 2,453 | | | | | | | | | | | | 17,277 | | | | | | | | |
Foreclosed assets held for sale | | | | | 2,678 | | | | | | 1,614 | | | | | | | | | | | | 4,292 | | | | | | | | |
Deferred tax asset, net | | | | | 5,122 | | | | | | 362 | | | | | | (603) | | | | | | 4,881 | | | | | | (3) | | |
Intangible asset – Core deposit intangibles | | | | | 9 | | | | | | 0 | | | | | | 2,179 | | | | | | 2,188 | | | | | | (4) | | |
Intangible asset – Goodwill | | | | | 11,942 | | | | | | 0 | | | | | | 16,012 | | | | | | 27,954 | | | | | | (8) | | |
Other assets | | | | | 15,394 | | | | | | 4,870 | | | | | | | | | | | | 20,264 | | | | | | | | |
TOTAL ASSETS | | | | $ | 1,285,439 | | | | | $ | 361,267 | | | | | $ | 4,397 | | | | | $ | 1,651,103 | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | | | $ | 260,961 | | | | | $ | 23,293 | | | | | | | | | | | $ | 283,714 | | | | | | | | |
Interest-bearing | | | | | 782,986 | | | | | | 232,096 | | | | | | (266) | | | | | | 1,015,356 | | | | | | (5) | | |
Total deposits | | | | | 1,043,947 | | | | | | 255,389 | | | | | | (266) | | | | | | 1,299,070 | | | | | | | | |
Borrowed funds | | | | | 41,406 | | | | | | 66,308 | | | | | | (422) | | | | | | 107,292 | | | | | | (6) | | |
Subordinated debt | | | | | 0 | | | | | | 12,239 | | | | | | | | | | | | 12,239 | | | | | | | | |
Other liabilities | | | | | 10,099 | | | | | | 1,197 | | | | | | | | | | | | 11,296 | | | | | | | | |
TOTAL LIABILITIES | | | | | 1,095,452 | | | | | | 335,133 | | | | | | (688) | | | | | | 1,429,897 | | | | | | | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 189,987 | | | | | | 26,134 | | | | | | 5,085 | | | | | | 221,206 | | | | | | (7) | | |
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | | | | $ | 1,285,439 | | | | | $ | 361,267 | | | | | $ | 4,397 | | | | | $ | 1,651,103 | | | | | | | | |
|
(In Thousands) | | | C&N Historical | | | Covenant Historical | | | Pro-Forma Adjustments | | | Pro Forma Combined | | | Note Reference | | |||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | | | $ | 17,667 | | | | | $ | 20,395 | | | | | | | | | | | $ | 38,062 | | | | | | | | |
Interest-bearing | | | | | 17,535 | | | | | | 27,552 | | | | | | | | | | | | 45,087 | | | | | | | | |
Total cash and due from banks | | | | | 35,202 | | | | | | 47,947 | | | | | | 0 | | | | | | 83,149 | | | | | | | | |
Held-to-maturity securities | | | | | 0 | | | | | | 1,000 | | | | | | | | | | | | 1,000 | | | | | | | | |
Available-for-sale debt securities, at fair value | | | | | 346,723 | | | | | | 21,839 | | | | | | (28,874) | | | | | | 339,688 | | | | | | (1) | | |
Marketable equity security | | | | | 979 | | | | | | 0 | | | | | | | | | | | | 979 | | | | | | | | |
Federal funds sold | | | | | 0 | | | | | | 2,271 | | | | | | | | | | | | 2,271 | | | | | | | | |
Loans held for sale | | | | | 767 | | | | | | 0 | | | | | | | | | | | | 767 | | | | | | | | |
Loans receivable | | | | | 1,182,222 | | | | | | 421,146 | | | | | | (8,423) | | | | | | 1,594,945 | | | | | | | | |
Allowance for loan losses | | | | | (9,836) | | | | | | (3,963) | | | | | | 3,963 | | | | | | (9,836) | | | | | | | | |
Loans, net | | | | | 1,172,386 | | | | | | 417,183 | | | | | | (4,460) | | | | | | 1,585,109 | | | | | | (2) | | |
Bank-owned life insurance | | | | | 18,641 | | | | | | 11,044 | | | | | | | | | | | | 29,685 | | | | | | | | |
Accrued interest receivable | | | | | 5,001 | | | | | | 1,487 | | | | | | | | | | | | 6,488 | | | | | | | | |
Bank premises and equipment, net | | | | | 17,170 | | | | | | 3,461 | | | | | | | | | | | | 20,631 | | | | | | | | |
Foreclosed assets held for sale | | | | | 2,886 | | | | | | 1,323 | | | | | | | | | | | | 4,209 | | | | | | | | |
Deferred tax asset, net | | | | | 2,618 | | | | | | 349 | | | | | | 234 | | | | | | 3,201 | | | | | | (3) | | |
Goodwill | | | | | 28,388 | | | | | | 0 | | | | | | 39,441 | | | | | | 67,289 | | | | | | (8) | | |
Core deposit intangibles | | | | | 1,247 | | | | | | 0 | | | | | | 3,610 | | | | | | 4,857 | | | | | | (4) | | |
Other assets | | | | | 22,137 | | | | | | 8,064 | | | | | | | | | | | | 30,201 | | | | | | | | |
TOTAL ASSETS | | | | $ | 1,654,145 | | | | | $ | 515,968 | | | | | $ | 9,951 | | | | | $ | 2,180,064 | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | | | $ | 285,904 | | | | | $ | 77,019 | | | | | | | | | | | $ | 362,923 | | | | | | | | |
Interest-bearing | | | | | 966,756 | | | | | | 316,426 | | | | | | 54 | | | | | | 1,283,236 | | | | | | (5) | | |
Total deposits | | | | | 1,252,660 | | | | | | 393,445 | | | | | | 54 | | | | | | 1,646,159 | | | | | | | | |
Borrowed funds | | | | | 138,347 | | | | | | 64,000 | | | | | | 208 | | | | | | 202,555 | | | | | | (6) | | |
Subordinated debt | | | | | 6,500 | | | | | | 10,000 | | | | | | | | | | | | 16,500 | | | | | | | | |
Other liabilities | | | | | 12,186 | | | | | | 6,445 | | | | | | | | | | | | 18,631 | | | | | | | | |
TOTAL LIABILITIES | | | | | 1,409,693 | | | | | | 473,890 | | | | | | 262 | | | | | | 1,883,845 | | | | | | | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 244,452 | | | | | | 42,078 | | | | | | 9,689 | | | | | | 296,219 | | | | | | (7) | | |
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | | | | $ | 1,654,145 | | | | | $ | 515,968 | | | | | $ | 9,951 | | | | | $ | 2,180,064 | | | | | | | | |
| Estimated transaction value | | | | | | | | | | $ | 42,850 | | |
| Monument’s stockholders’ equity at September 30, 2018 | | | | | 26,134 | | | | | | | | |
| Purchase accounting adjustments: | | | | | | | | | | | | | |
| Deposits | | | | | 266 | | | | | | | | |
| Borrowed funds | | | | | 422 | | | | | | | | |
| Core deposit intangibles | | | | | 2,179 | | | | | | | | |
| | | | | | 2,867 | | | | | | | | |
| Adjustment to net deferred tax asset | | | | | (603) | | | | | | | | |
| | | | | | 2,264 | | | | | | | | |
| Monument’s estimated merger-related expenses, net | | | | | (1,560) | | | | | | | | |
| Monument’s stockholders’ equity, as adjusted | | | | | | | | | | | 26,838 | | |
| Estimated allocation to goodwill | | | | | | | | | | $ | 16,012 | | |
|
| Estimated transaction value | | | | | | | | | | $ | 79,513 | | |
| Covenant’s stockholders’ equity at December 31, 2019 | | | | | 42,078 | | | | | | | | |
| Purchase accounting adjustments: | | | | | | | | | | | | | |
| Loans, net | | | | | (4,460) | | | | | | | | |
| Deposits | | | | | (54) | | | | | | | | |
| Borrowed funds | | | | | (208) | | | | | | | | |
| Core deposit intangibles | | | | | 3,610 | | | | | | | | |
| | | | | | (1,112) | | | | | | | | |
| Adjustment to net deferred tax asset | | | | | 234 | | | | | | | | |
| | | | | | (878) | | | | | | | | |
| Covenant’s estimated merger-related expenses, net | | | | | (1,128) | | | | | | | | |
| Covenant’s stockholders’ equity, as adjusted | | | | | | | | | | | 40,072 | | |
| Estimated allocation to goodwill | | | | | | | | | | $ | 39,441 | | |
|
(Dollars In Thousands, Except Per Share Data) | | | C&N Historical | | | Monument Historical | | | Pro Forma Adjustments | | | Pro Forma Combined | | | Note Reference | | |||||||||||||||
INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | | | $ | 36,944 | | | | | $ | 10,474 | | | | | | | | | | | $ | 47,418 | | | | | | | | |
Interest and dividend income on securities | | | | | 8,704 | | | | | | 1,799 | | | | | | (368) | | | | | | 10,135 | | | | | | (1) | | |
Other interest income | | | | | 215 | | | | | | 268 | | | | | | | | | | | | 483 | | | | | | | | |
Total interest and dividend income | | | | | 45,863 | | | | | | 12,541 | | | | | | (368) | | | | | | 58,036 | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | | | 2,403 | | | | | | 2,069 | | | | | | 266 | | | | | | 4,738 | | | | | | (2) | | |
Interest on borrowed funds and subordinated debt | | | | | 1,512 | | | | | | 1,686 | | | | | | 371 | | | | | | 3,569 | | | | | | (3) | | |
Total interest expense | | | | | 3,915 | | | | | | 3,755 | | | | | | 637 | | | | | | 8,307 | | | | | | | | |
Net interest income | | | | | 41,948 | | | | | | 8,786 | | | | | | (1,005) | | | | | | 49,729 | | | | | | | | |
Provision for loan losses | | | | | 801 | | | | | | 290 | | | | | | | | | | | | 1,091 | | | | | | | | |
Net interest income after provision for loan losses | | | | | 41,147 | | | | | | 8,496 | | | | | | (1,005) | | | | | | 48,638 | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trust and financial management revenue | | | | | 5,399 | | | | | | 0 | | | | | | | | | | | | 5,399 | | | | | | | | |
Brokerage revenue | | | | | 797 | | | | | | 0 | | | | | | | | | | | | 797 | | | | | | | | |
Service charges on deposit accounts | | | | | 4,488 | | | | | | 24 | | | | | | | | | | | | 4,512 | | | | | | | | |
Interchange revenue from debit card transactions | | | | | 2,221 | | | | | | 0 | | | | | | | | | | | | 2,221 | | | | | | | | |
Net gains from sale of loans | | | | | 818 | | | | | | 63 | | | | | | | | | | | | 881 | | | | | | | | |
Increase in cash surrender value of life insurance | | | | | 379 | | | | | | 0 | | | | | | | | | | | | 379 | | | | | | | | |
Other noninterest income | | | | | 2,051 | | | | | | 56 | | | | | | | | | | | | 2,107 | | | | | | | | |
Sub-total | | | | | 16,153 | | | | | | 143 | | | | | | 0 | | | | | | 16,296 | | | | | | | | |
Realized gains on available-for-sale debt securities, net | | | | | 257 | | | | | | 11 | | | | | | | | | | | | 268 | | | | | | | | |
Total noninterest income | | | | | 16,410 | | | | | | 154 | | | | | | 0 | | | | | | 16,564 | | | | | | | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits | | | | | 21,180 | | | | | | 3,692 | | | | | | | | | | | | 24,872 | | | | | | | | |
Occupancy and equipment expense | | | | | 3,639 | | | | | | 402 | | | | | | | | | | | | 4,041 | | | | | | | | |
Data processing expenses | | | | | 2,231 | | | | | | 513 | | | | | | | | | | | | 2,744 | | | | | | | | |
Pennsylvania shares tax | | | | | 1,329 | | | | | | 191 | | | | | | | | | | | | 1,520 | | | | | | | | |
Professional fees | | | | | 872 | | | | | | 266 | | | | | | | | | | | | 1,138 | | | | | | | | |
Other noninterest expense | | | | | 7,716 | | | | | | 1,233 | | | | | | | | | | | | 8,949 | | | | | | | | |
Total noninterest expense | | | | | 36,967 | | | | | | 6,297 | | | | | | 0 | | | | | | 43,264 | | | | | | | | |
Income before income tax provision | | | | | 20,590 | | | | | | 2,353 | | | | | | (1,005) | | | | | | 21,938 | | | | | | | | |
Income tax provision | | | | | 7,156 | | | | | | 670 | | | | | | (352) | | | | | | 7,474 | | | | | | (4) | | |
NET INCOME | | | | | 13,434 | | | | | | 1,683 | | | | | | (653) | | | | | | 14,464 | | | | | | | | |
Dividend on preferred stock | | | | | | | | | | | 85 | | | | | | | | | | | | 85 | | | | | | | | |
INCOME AVAILABLE TO COMMON STOCKHOLDERS | | | | $ | 13,434 | | | | | $ | 1,598 | | | | | ($ | 653) | | | | | $ | 14,379 | | | | | | | | |
EARNINGS PER COMMON SHARE – BASIC | | | | $ | 1.10 | | | | | $ | 1.19 | | | | | | | | | | | $ | 0.97 | | | | | | | | |
EARNINGS PER COMMON SHARE – DILUTED | | | | $ | 1.10 | | | | | $ | 1.09 | | | | | | | | | | | $ | 0.96 | | | | | | | | |
Weighted-average Shares Outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 12,115,840 | | | | | | 1,345,289 | | | | | | 1,269,703 | | | | | | 14,730,832 | | | | | | | | |
Diluted | | | | | 12,155,136 | | | | | | 1,468,764 | | | | | | 1,269,703 | | | | | | 14,893,603 | | | | | | | | |
NET INCOME ATTRIBUTABLE TO COMMON SHARES | | | | $ | 13,365 | | | | | $ | 1,598 | | | | | $ | (653) | | | | | $ | 14,310 | | | | | | | | |
(In Thousands) | | | C&N Historical | | | Covenant Historical | | | Pro-Forma Adjustments | | | Pro Forma Combined | | | Note Reference | | |||||||||||||||
INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | | | $ | 55,190 | | | | | $ | 22,051 | | | | | $ | 1,230 | | | | | $ | 78,471 | | | | | | (1) | | |
Interest and dividend income on securities | | | | | 9,045 | | | | | | 434 | | | | | | (771) | | | | | | 8,708 | | | | | | (2) | | |
Other interest income | | | | | 536 | | | | | | 1,022 | | | | | | | | | | | | 1,558 | | | | | | | | |
Total interest and dividend income | | | | | 64,771 | | | | | | 23,507 | | | | | | 459 | | | | | | 88,737 | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | | | 8,190 | | | | | | 5,131 | | | | | | (34) | | | | | | 13,287 | | | | | | (3) | | |
Interest on borrowed funds and subordinated debt | | | | | 2,093 | | | | | | 2,095 | | | | | | (107) | | | | | | 4,081 | | | | | | (4) | | |
Total interest expense | | | | | 10,283 | | | | | | 7,226 | | | | | | (141) | | | | | | 17,368 | | | | | | | | |
Net interest income | | | | | 54,488 | | | | | | 16,281 | | | | | | 600 | | | | | | 71,369 | | | | | | | | |
Provision for loan losses | | | | | 849 | | | | | | 460 | | | | | | | | | | | | 1,309 | | | | | | | | |
Net interest income after provision for loan losses | | | | | 53,639 | | | | | | 15,821 | | | | | | 600 | | | | | | 70,060 | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trust and financial management revenue | | | | | 6,106 | | | | | | 0 | | | | | | | | | | | | 6,106 | | | | | | | | |
Brokerage revenue | | | | | 1,266 | | | | | | 0 | | | | | | | | | | | | 1,266 | | | | | | | | |
Service charges on deposit accounts | | | | | 5,358 | | | | | | 163 | | | | | | | | | | | | 5,521 | | | | | | | | |
Interchange revenue from debit card transactions | | | | | 2,754 | | | | | | 0 | | | | | | | | | | | | 2,754 | | | | | | | | |
Net gains from sale of loans | | | | | 924 | | | | | | 0 | | | | | | | | | | | | 924 | | | | | | | | |
Increase in cash surrender value of life insurance | | | | | 402 | | | | | | 262 | | | | | | | | | | | | 664 | | | | | | | | |
Other noninterest income | | | | | 2,474 | | | | | | 841 | | | | | | | | | | | | 3,315 | | | | | | | | |
Sub-total | | | | | 19,284 | | | | | | 1,266 | | | | | | 0 | | | | | | 20,550 | | | | | | | | |
Realized gains on available-for-sale debt securities, net | | | | | 23 | | | | | | 0 | | | | | | | | | | | | 23 | | | | | | | | |
Total noninterest income | | | | | 19,307 | | | | | | 1,266 | | | | | | 0 | | | | | | 20,573 | | | | | | | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits | | | | | 26,481 | | | | | | 7,761 | | | | | | | | | | | | 34,242 | | | | | | | | |
Occupancy and equipment expense | | | | | 3,918 | | | | | | 909 | | | | | | | | | | | | 4,827 | | | | | | | | |
Data processing expenses | | | | | 3,403 | | | | | | 653 | | | | | | | | | | | | 4,056 | | | | | | | | |
Pennsylvania shares tax | | | | | 1,380 | | | | | | 397 | | | | | | | | | | | | 1,777 | | | | | | | | |
Professional fees | | | | | 1,069 | | | | | | 409 | | | | | | | | | | | | 1,478 | | | | | | | | |
Merger-related expenses | | | | | 4,099 | | | | | | 0 | | | | | | | | | | | | 4,099 | | | | | | | | |
Other noninterest expense | | | | | 9,187 | | | | | | 2,535 | | | | | | 722 | | | | | | 12,444 | | | | | | (5) | | |
Total noninterest expense | | | | | 49,537 | | | | | | 12,664 | | | | | | 722 | | | | | | 62,923 | | | | | | | | |
Income before income tax provision | | | | | 23,409 | | | | | | 4,423 | | | | | | (122) | | | | | | 27,710 | | | | | | | | |
Income tax provision | | | | | 3,905 | | | | | | 861 | | | | | | (26) | | | | | | 4,740 | | | | | | (6) | | |
NET INCOME | | | | $ | 19,504 | | | | | $ | 3,562 | | | | | $ | (96) | | | | | $ | 22,970 | | | | | | | | |
EARNINGS PER COMMON SHARE — BASIC | | | | $ | 1.46 | | | | | $ | 0.81 | | | | | | | | | | | $ | 1.49 | | | | | | | | |
EARNINGS PER COMMON SHARE — DILUTED | | | | $ | 1.46 | | | | | $ | 0.79 | | | | | | | | | | | $ | 1.49 | | | | | | | | |
(Dollars In Thousands, Except Per Share Data) | | | C&N Historical | | | Monument Historical | | | Pro Forma Adjustments | | | Pro Forma Combined | | | Note Reference | | |||||||||||||||
INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | | | $ | 30,207 | | | | | $ | 8,790 | | | | | | | | | | | $ | 38,997 | | | | | | | | |
Interest and dividend income on securities | | | | | 6,489 | | | | | | 2,026 | | | | | | (348) | | | | | | 8,167 | | | | | | (1) | | |
Other interest income | | | | | 328 | | | | | | 43 | | | | | | | | | | | | 371 | | | | | | | | |
Total interest and dividend income | | | | | 37,024 | | | | | | 10,859 | | | | | | (348) | | | | | | 47,535 | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | | | 2,641 | | | | | | 2,291 | | | | | | | | | | | | 4,932 | | | | | | | | |
Interest on borrowed funds and subordinated debt | | | | | 672 | | | | | | 1,430 | | | | | | 51 | | | | | | 2,153 | | | | | | (3) | | |
Total interest expense | | | | | 3,313 | | | | | | 3,721 | | | | | | 51 | | | | | | 7,085 | | | | | | | | |
Net interest income | | | | | 33,711 | | | | | | 7,138 | | | | | | (399) | | | | | | 40,450 | | | | | | | | |
Provision for loan losses | | | | | 332 | | | | | | 395 | | | | | | | | | | | | 727 | | | | | | | | |
Net interest income after provision for loan losses | | | | | 33,379 | | | | | | 6,743 | | | | | | (399) | | | | | | 39,723 | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trust and financial management revenue | | | | | 4,375 | | | | | | 0 | | | | | | | | | | | | 4,375 | | | | | | | | |
Brokerage revenue | | | | | 718 | | | | | | 0 | | | | | | | | | | | | 718 | | | | | | | | |
Service charges on deposit accounts | | | | | 3,837 | | | | | | 86 | | | | | | | | | | | | 3,923 | | | | | | | | |
Interchange revenue from debit card transactions | | | | | 1,880 | | | | | | 0 | | | | | | | | | | | | 1,880 | | | | | | | | |
Net gains from sale of loans | | | | | 514 | | | | | | 10 | | | | | | | | | | | | 524 | | | | | | | | |
Increase in cash surrender value of life insurance | | | | | 295 | | | | | | 0 | | | | | | | | | | | | 295 | | | | | | | | |
Other noninterest income | | | | | 1,938 | | | | | | 4 | | | | | | | | | | | | 1,942 | | | | | | | | |
Sub-total | | | | | 13,557 | | | | | | 100 | | | | | | 0 | | | | | | 13,657 | | | | | | | | |
Gain on restricted equity security | | | | | 2,321 | | | | | | | | | | | | | | | | | | 2,321 | | | | | | | | |
Realized (losses) gains on available-for-sale debt securities, net | | | | | (284) | | | | | | 730 | | | | | | | | | | | | 446 | | | | | | | | |
Total noninterest income | | | | | 15,594 | | | | | | 830 | | | | | | 0 | | | | | | 16,424 | | | | | | | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits | | | | | 16,627 | | | | | | 2,789 | | | | | | | | | | | | 19,416 | | | | | | | | |
Occupancy and equipment expense | | | | | 2,799 | | | | | | 284 | | | | | | | | | | | | 3,083 | | | | | | | | |
Data processing expenses | | | | | 2,002 | | | | | | 440 | | | | | | | | | | | | 2,442 | | | | | | | | |
Pennsylvania shares tax | | | | | 998 | | | | | | 144 | | | | | | | | | | | | 1,142 | | | | | | | | |
Professional fees | | | | | 860 | | | | | | 218 | | | | | | | | | | | | 1,078 | | | | | | | | |
Other noninterest expense | | | | | 6,126 | | | | | | 1,481 | | | | | | | | | | | | 7,607 | | | | | | | | |
Total noninterest expense | | | | | 29,412 | | | | | | 5,356 | | | | | | 0 | | | | | | 34,768 | | | | | | | | |
Income before income tax provision | | | | | 19,561 | | | | | | 2,217 | | | | | | (399) | | | | | | 21,379 | | | | | | | | |
Income tax provision | | | | | 3,229 | | | | | | 380 | | | | | | (84) | | | | | | 3,525 | | | | | | (4) | | |
NET INCOME | | | | | 16,332 | | | | | | 1,837 | | | | | | (315) | | | | | | 17,854 | | | | | | | | |
Dividend on preferred stock | | | | | | | | | | | 0 | | | | | | | | | | | | 0 | | | | | | | | |
INCOME AVAILABLE TO COMMON STOCKHOLDERS | | | | $ | 16,332 | | | | | $ | 1,837 | | | | | $ | (315) | | | | | $ | 17,854 | | | | | | | | |
EARNINGS PER COMMON SHARE – BASIC | | | | $ | 1.33 | | | | | $ | 1.20 | | | | | | | | | | | $ | 1.18 | | | | | | | | |
EARNINGS PER COMMON SHARE – DILUTED | | | | $ | 1.33 | | | | | $ | 1.18 | | | | | | | | | | | $ | 1.18 | | | | | | | | |
Weighted-average Shares Outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 12,209,879 | | | | | | 1,530,616 | | | | | | 1,269,703 | | | | | | 15,010,198 | | | | | | | | |
Diluted | | | | | 12,248,669 | | | | | | 1,554,969 | | | | | | 1,269,703 | | | | | | 15,073,341 | | | | | | | | |
NET INCOME ATTRIBUTABLE TO COMMON SHARES | | | | $ | 16,249 | | | | | $ | 1,837 | | | | | ($ | 315) | | | | | $ | 17,771 | | | | | | | | |
| | | C&N Historical | | | Monument Historical | | | Pro Forma Combined (Unaudited) | | | Equivalent Pro Forma Combined(3) (Unaudited) | | | | | | ||||||||||||||||||||
Basic Earnings per Share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
For the year ended December 31, 2017 | | | | $ | 1.10 | | | | | $ | 1.19 | | | | | $ | 0.97 | | | | | $ | 0.98 | | | | | | | ||||||||
For the nine months ended September 30, 2018 (Unaudited) | | | | $ | 1.33 | | | | | $ | 1.20 | | | | | $ | 1.18 | | | | | $ | 1.20 | | | | | | | | | | | | | | |
Diluted Earnings per Share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
For the year ended December 31, 2017 | | | | $ | 1.10 | | | | | $ | 1.09 | | | | | $ | 0.96 | | | | | $ | 0.97 | | | | | | | ||||||||
For the nine months ended September 30, 2018 (Unaudited) | | | | $ | 1.33 | | | | | $ | 1.18 | | | | | $ | 1.18 | | | | | $ | 1.20 | | | | | | | | | | | | | | |
Cash Dividends per Share(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
For the year ended December 31, 2017 | | | | $ | 1.04 | | | | | $ | 0.00 | | | | | $ | 1.04 | | | | | $ | 1.05 | | | | | | | ||||||||
For the nine months ended September 30, 2018 (Unaudited) | | | | $ | 0.81 | | | | | $ | 0.00 | | | | | $ | 0.81 | | | | | $ | 0.82 | | | | | | | ||||||||
Book Value per Share(2): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
At December 31, 2017 | | | | $ | 15.43 | | | | | $ | 17.04 | | | | | $ | 14.60 | | | | | $ | 14.81 | | | | | | | ||||||||
At September 30, 2018 | | | | $ | 15.45 | | | | | $ | 16.70 | | | | | $ | 14.62 | | | | | $ | 14.83 | | | | | | | ||||||||
Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
At December 31, 2017 | | | | | 12,214,525 | | | | | | 1,379,850 | | | | | | 14,864,078 | | | | | | | | | | | | | ||||||||
At September 30, 2018 | | | | | 12,297,274 | | | | | | 1,564,599 | | | | | | 15,131,576 | | | | | | | | | | | | | ||||||||
Weighted-Average Common Shares Outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Used in Earnings per Share Computations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Basic: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
For the year ended December 31, 2017 | | | | | 12,115,840 | | | | | | 1,345,289 | | | | | | 14,730,832 | | | | | | | | | | | | | ||||||||
For the nine months ended September 30, 2018 (Unaudited) | | | | | 12,209,879 | | | | | | 1,530,616 | | | | | | 15,010,198 | | | | | | | | | | | | | ||||||||
Diluted: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
For the year ended December 31, 2017 | | | | | 12,155,136 | | | | | | 1,468,764 | | | | | | 14,893,603 | | | | | | | | | | | | | ||||||||
For the nine months ended September 30, 2018 (Unaudited) | | | | | 12,248,669 | | | | | | 1,554,969 | | | | | | 15,073,341 | | | | | | | | | | | | |
| | | C&N Historical | | | Covenant Historical | | | Pro Forma Combined (Unaudited) | | | Equivalent Pro Forma Combined(3) (Unaudited) | | ||||||||||||
Basic Earnings per Share | | | | $ | 1.46 | | | | | $ | 0.81 | | | | | $ | 1.49 | | | | | $ | 0.93 | | |
Diluted Earnings per Share | | | | $ | 1.46 | | | | | $ | 0.79 | | | | | $ | 1.49 | | | | | $ | 0.93 | | |
Cash Dividends per Share(1) | | | | $ | 1.18 | | | | | $ | 0.00 | | | | | $ | 1.18 | | | | | $ | 0.73 | | |
Book Value per Share(2) | | | | $ | 17.82 | | | | | $ | 9.56 | | | | | $ | 18.79 | | | | | $ | 11.67 | | |
Common Shares Outstanding | | | | | 13,716,445 | | | | | | 4,400,434 | | | | | | 15,766,608 | | | | | | | | |
Weighted-Average Common Shares Outstanding | | | | | | | | | | | | | | | | | | | | | | | | | |
Used in Earnings per Computations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 13,298,736 | | | | | | 4,400,342 | | | | | | 15,348,899 | | | | | | | | |
Diluted | | | | | 13,321,559 | | | | | | 4,527,193 | | | | | | 15,371,722 | | | | | | | | |
| | | | | | | | | Monument Selected Companies | | |||||||||||||||||||||
| | | Monument | | | Low | | | Average | | | Median | | | High | | |||||||||||||||
Tangible Common Equity/Tangible Assets (%) | | | | | 7.5 | | | | | | 7.8 | | | | | | 10.5 | | | | | | 10.0 | | | | | | 20.7 | | |
Non-Performing Assets (NPAs)/Assets (%) | | | | | 0.87 | | | | | | 0.08 | | | | | | 0.68 | | | | | | 0.73 | | | | | | 1.24 | | |
MRQ Core Return on Average Assets (%)(1) | | | | | 0.92 | | | | | | 0.57 | | | | | | 1.14 | | | | | | 1.09 | | | | | | 1.86 | | |
MRQ Core Return on Average Equity (%)(1) | | | | | 9.64 | | | | | | 6.28 | | | | | | 10.87 | | | | | | 10.84 | | | | | | 16.90 | | |
MRQ Efficiency Ratio (%) | | | | | 65.1 | | | | | | 53.7 | | | | | | 63.6 | | | | | | 64.4 | | | | | | 74.3 | | |
| | | Monument Selected Companies | | |||||||||||||||||||||
| | | Low | | | Average | | | Median | | | High | | ||||||||||||
Dividend Yield (%) | | | | | 1.01 | | | | | | 2.77 | | | | | | 2.76 | | | | | | 4.42 | | |
Stock Price/Tangible Book Value per Share (%) | | | | | 93.9 | | | | | | 128.1 | | | | | | 126.1 | | | | | | 167.3 | | |
Stock Price/LTM EPS (x) | | | | | 6.7 | | | | | | 12.6 | | | | | | 12.5 | | | | | | 17.9 | | |
| Transaction Price / Covenant September 30, 2019 Book Value Per Share | | | | | 178% | | |
| Transaction Price / Covenant September 30, 2019 Tangible Book Value Per Share | | | | | 178% | | |
| Transaction Price / LTM Earnings per Share | | | | | 18.3x | | |
| Transaction Price / 2019 Estimated Earnings per Share(1) | | | | | 18.6x | | |
| Transaction Price / 2020 Estimated Earnings per Share(1) | | | | | 14.6x | | |
| Tangible Book Premium / Core Deposits (Excluding CDs > $100K)(2) | | | | | 13.3% | | |
| | | Beginning Value December 17, 2018 | | | Ending Value December 17, 2019 | | ||||||
C&N | | | | | 100% | | | | | | 104.6% | | |
C&N Peer Group | | | | | 100% | | | | | | 113.5% | | |
S&P 500 Index. | | | | | 100% | | | | | | 125.4% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 120.1% | | |
| | | Beginning Value December 17, 2016 | | | Ending Value December 17, 2019 | | ||||||
C&N | | | | | 100% | | | | | | 105.7% | | |
C&N Peer Group | | | | | 100% | | | | | | 118.2% | | |
S&P 500 Index | | | | | 100% | | | | | | 141.4% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 105.9% | | |
| 1st Colonial Bancorp, Inc. | | | Muncy Bank Financial, Inc. | |
| Commercial National Financial Corporation | | | New Tripoli Bancorp, Inc. | |
| First Community Financial Corporation | | | Northumberland Bancorp | |
| Mars Bancorp, Inc. | | | Peoples Limited | |
| Mauch Chunk Trust Financial Corp. | | | Susquehanna Community Financial, Inc. | |
| Mifflinburg Bancorp, Inc. | | | Woodlands Financial Services Company | |
| MSB Financial Corp. | | | York Traditions Bank | |
| | | Covenant(2) | | | Covenant Peer Group Median | | | Covenant Peer Group Mean | | | Covenant Peer Group Low | | | Covenant Peer Group High | | |||||||||||||||
Total assets ($mm) | | | | | 512 | | | | | | 485 | | | | | | 486 | | | | | | 403 | | | | | | 591 | | |
Loans / Deposits (%) | | | | | 109.2 | | | | | | 81.7 | | | | | | 81.6 | | | | | | 59.1 | | | | | | 107.7 | | |
Non-performing assets(1)/ Total assets (%) | | | | | 0.93 | | | | | | 0.64 | | | | | | 0.76 | | | | | | 0.02 | | | | | | 2.24 | | |
Tangible common equity/Tangible assets (%) | | | | | 10.14 | | | | | | 10.15 | | | | | | 10.42 | | | | | | 8.66 | | | | | | 15.16 | | |
Tier 1 Leverage Ratio (%) | | | | | 10.39 | | | | | | 9.96 | | | | | | 10.06 | | | | | | 8.46 | | | | | | 13.51 | | |
Total RBC Ratio (%) | | | | | 13.20 | | | | | | 15.33 | | | | | | 15.79 | | | | | | 12.56 | | | | | | 21.40 | | |
CRE / Total RBC Ratio (%) | | | | | 299.2 | | | | | | 109.4 | | | | | | 142.1 | | | | | | 52.3 | | | | | | 414.4 | | |
LTM Return on average assets (%) | | | | | 1.04 | | | | | | 1.02 | | | | | | 0.92 | | | | | | 0.47 | | | | | | 1.29 | | |
LTM Return on average equity (%) | | | | | 10.24 | | | | | | 9.12 | | | | | | 9.12 | | | | | | 5.20 | | | | | | 12.91 | | |
LTM Net interest margin (%) | | | | | 3.69 | | | | | | 3.26 | | | | | | 3.32 | | | | | | 2.83 | | | | | | 3.93 | | |
LTM Efficiency ratio (%) | | | | | 58.5 | | | | | | 68.0 | | | | | | 69.0 | | | | | | 60.2 | | | | | | 83.6 | | |
Price/Tangible book value (%) | | | | | — | | | | | | 110 | | | | | | 110 | | | | | | 82 | | | | | | 140 | | |
Price/LTM Earnings per share (x) | | | | | — | | | | | | 12.3 | | | | | | 13.3 | | | | | | 9.3 | | | | | | 18.9 | | |
Current Dividend Yield (%) | | | | | — | | | | | | 2.7 | | | | | | 2.4 | | | | | | 0.0 | | | | | | 5.0 | | |
Market value ($mm) | | | | | — | | | | | | 56 | | | | | | 56 | | | | | | 31 | | | | | | 80 | | |
| | | | | | | | | Monument Selected Companies | | |||||||||||||||
| | | CZNC/Monument | | | 10th Percentile | | | Median | | | 90th Percentile | | ||||||||||||
Price to Tangible Book Value (%) | | | | | 166.9 | | | | | | 146.2 | | | | | | 161.9 | | | | | | 202.0 | | |
Price to LTM Core Earnings (x) | | | | | 20.3 | | | | | | 12.7 | | | | | | 16.1 | | | | | | 22.8 | | |
Core Deposit Premium (%) | | | | | 8.3 | | | | | | 1.3 | | | | | | 4.6 | | | | | | 10.7 | | |
Price to Assets (%) | | | | | 12.5 | | | | | | 11.9 | | | | | | 15.9 | | | | | | 21.9 | | |
Price to Deposits (%) | | | | | 19.5 | | | | | | 14.6 | | | | | | 20.0 | | | | | | 30.0 | | |
| |||||
ACNB Corporation | | | | ||
| | | Hingham Institution for Savings | | |
| Capital Bancorp, Inc. | | | | |
| | | | ||
| Citizens Financial Services, Inc. | | | | |
| | | | ||
| | | | ||
| | | | ||
| | | |||
|
| | | | | | | | | C&N Peer Group | | |||||||||||||||||||||
| | | C&N | | | Low | | | Average | | | Median | | | High | | |||||||||||||||
Tangible Common Equity/Tangible Assets (%) | | | | | 13.9 | | | | | | 7.0 | | | | | | 8.5 | | | | | | 8.3 | | | | | | 11.1 | | |
Non-Performing Assets (NPAs)/Assets (%) | | | | | 1.16 | | | | | | 0.10 | | | | | | 0.78 | | | | | | 0.66 | | | | | | 1.97 | | |
MRQ Core Return on Average Assets (%)(1) | | | | | 1.64 | | | | | | 0.60 | | | | | | 0.97 | | | | | | 0.96 | | | | | | 1.39 | | |
MRQ Core Return on Average Equity (%)(1) | | | | | 11.21 | | | | | | 6.47 | | | | | | 10.37 | | | | | | 10.57 | | | | | | 14.23 | | |
MRQ Efficiency Ratio (%) | | | | | 59.6 | | | | | | 53.8 | | | | | | 66.3 | | | | | | 64.9 | | | | | | 82.2 | | |
| | | | | | | | | C&N Peer Group | | |||||||||||||||||||||
| | | C&N | | | Low | | | Average | | | Median | | | High | | |||||||||||||||
Dividend Yield (%) | | | | | 4.05 | | | | | | 0.00 | | | | | | 2.26 | | | | | | 2.41 | | | | | | 4.31 | | |
Stock Price/Tangible Book Value per Share (%) | | | | | 184.9 | | | | | | 92.4 | | | | | | 159.4 | | | | | | 158.4 | | | | | | 235.4 | | |
Stock Price/LTM EPS (x) | | | | | 19.6 | | | | | | 12.0 | | | | | | 18.5 | | | | | | 18.3 | | | | | | 25.0 | | |
Stock Price/2018 EPS (x)(1) | | | | | 16.3 | | | | | | 12.1 | | | | | | 15.8 | | | | | | 14.5 | | | | | | 19.6 | | |
Stock Price/2019 EPS (x)(1) | | | | | 15.6 | | | | | | 11.8 | | | | | | 13.0 | | | | | | 13.6 | | | | | | 13.6 | | |
| | | C&N | | | C&N Peer Group Median | | | C&N Peer Group Mean | | | C&N Peer Group Low | | | C&N Peer Group High | | |||||||||||||||
Total assets ($mm) | | | | | 1,643 | | | | | | 2,033 | | | | | | 2,043 | | | | | | 1,311 | | | | | | 3,482 | | |
Loans / Deposits (%) | | | | | 88.0 | | | | | | 96.8 | | | | | | 96.2 | | | | | | 77.8 | | | | | | 126.4 | | |
Non-performing assets(1) / Total assets (%) | | | | | 0.77 | | | | | | 0.61 | | | | | | 0.92 | | | | | | 0.11 | | | | | | 2.46 | | |
Tangible common equity/Tangible assets (%) | | | | | 13.21 | | | | | | 9.59 | | | | | | 9.91 | | | | | | 8.80 | | | | | | 11.40 | | |
Tier 1 Leverage Ratio (%) | | | | | 13.11 | | | | | | 10.40 | | | | | | 10.47 | | | | | | 8.82 | | | | | | 11.68 | | |
Total RBC Ratio (%) | | | | | 20.77 | | | | | | 14.28 | | | | | | 14.90 | | | | | | 12.80 | | | | | | 19.51 | | |
CRE / Total RBC Ratio (%) | | | | | 141.5(2) | | | | | | 221.4 | | | | | | 231.7 | | | | | | 62.1 | | | | | | 410.6 | | |
LTM Return on average assets (%) | | | | | 1.55 | | | | | | 1.35 | | | | | | 1.50 | | | | | | 1.26 | | | | | | 2.91 | | |
LTM Return on average equity (%) | | | | | 9.13 | | | | | | 13.03 | | | | | | 13.16 | | | | | | 6.32 | | | | | | 25.13 | | |
LTM Net interest margin (%) | | | | | 3.93 | | | | | | 3.79 | | | | | | 3.83 | | | | | | 2.71 | | | | | | 5.64 | | |
LTM Efficiency ratio (%) | | | | | 60.40 | | | | | | 54.97 | | | | | | 53.11 | | | | | | 28.79 | | | | | | 72.45 | | |
Price/Tangible book value (%) | | | | | 174 | | | | | | 168 | | | | | | 175 | | | | | | 142 | | | | | | 226 | | |
Price/LTM Earnings per share (x) | | | | | 17.7 | | | | | | 12.8 | | | | | | 13.3 | | | | | | 9.4 | | | | | | 20.5 | | |
Price/2019 Estimated Earnings per share (x) | | | | | 15.6 | | | | | | 12.2 | | | | | | 12.1 | | | | | | 9.2 | | | | | | 14.2 | | |
Price/2020 Estimated Earnings per share (x) | | | | | 15.6 | | | | | | 11.9 | | | | | | 11.8 | | | | | | 9.4 | | | | | | 14.2 | | |
Current Dividend Yield (%) | | | | | 4.0 | | | | | | 2.2 | | | | | | 1.9 | | | | | | 0.0 | | | | | | 4.0 | | |
Market value ($mm) | | | | | 371 | | | | | | 333 | | | | | | 355 | | | | | | 198 | | | | | | 649 | | |
| | | ||
Fidelity D & D Bancorp Inc. | | | | |
Community Bank System Inc. | | | Steuben Trust Corporation | |
Citizens Financial Services | | | MidCoast Community Bancorp Inc. | |
Investors Bancorp Inc. | | | Gold Coast Bancorp Inc. | |
ACNB Corp. | | | Frederick County Bancorp | |
1st Constitution Bancorp | | | Shore Community Bank | |
Community Bank System Inc. | | | Kinderhook Bank Corp. | |
OceanFirst Financial Corp. | | | Capital Bank of New Jersey | |
Orrstown Financial Services | | | Hamilton Bancorp Inc. | |
Acquiror | | | Target | | |||
Citizens & Northern Corp. | | | Monument Bancorp Inc. | | |||
Lakeland Bancorp | | | Highlands Bancorp Inc. | | |||
| | | |||||
Northwest Bancshares, Inc. | | | |||||
| |||||||
Mid Penn Bancorp Inc. | | | |
Acquiror | | | | |
| | MNB Corporation | | |
Centreville Bank | | | PB Bancorp Inc. | |
Community Bank System Inc. | | | Steuben Trust Corporation | |
Heartland Financial USA Inc. | | | Rockford B&TC | |
Wintrust Financial Corp. | | | SBC Inc. | |
Associated Banc-Corp | | | First Staunton Bancshares Inc. | |
South Plains Financial Inc. | | | West Texas State Bank | |
Investors Bancorp Inc. | | | Gold Coast Bancorp Inc. | |
Banner Corp. | | | AltaPacific Bancorp | |
First Bancshares Inc. | | | | |
ACNB Corp. | | | Frederick County Bancorp | |
Nicolet Bankshares Inc. | | |
| |||||||
| | | |||||
Liberty Bank | | | | ||||
| | | |||||
German American Bancorp Inc. | | | |||||
|
| | | C&N/ Covenant | | | Regional Precedent Transactions | | ||||||||||||||||||||||||
| | | Median | | | Mean | | | Low | | | High | | ||||||||||||||||||
Transaction Price / LTM Earnings Per Share (x) | | | | | 18.3 | | | | | | 18.7 | | | | | | 19.3 | | | | | | 12.2 | | | | | | 32.6 | | |
Transaction Price / Tangible Book Value Per Share (%) | | | | | 178 | | | | | | 166 | | | | | | 164 | | | | | | 117 | | | | | | 200 | | |
Tangible Book Value Premium to Core Deposits (%) | | | | | 13.3 | | | | | | 8.3 | | | | | | 8.4 | | | | | | 2.9 | | | | | | 12.3 | | |
| | | C&N/ Covenant | | | Nationwide Precedent Transactions | | ||||||||||||||||||||||||
| | | Median | | | Mean | | | Low | | | High | | ||||||||||||||||||
Transaction Price / LTM Earnings Per Share (x) | | | | | 18.3 | | | | | | 17.0 | | | | | | 17.8 | | | | | | 12.3 | | | | | | 25.4 | | |
Transaction Price / Tangible Book Value Per Share (%) | | | | | 178 | | | | | | 169 | | | | | | 165 | | | | | | 127 | | | | | | 202 | | |
Tangible Book Value Premium to Core Deposits (%) | | | | | 13.3 | | | | | | 10.2 | | | | | | 9.7 | | | | | | 4.1 | | | | | | 19.5 | | |
Discount Rate | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | | 16.0x | | ||||||||||||||||||
11.0% | | | | $ | 10.79 | | | | | $ | 11.77 | | | | | $ | 12.75 | | | | | $ | 13.73 | | | | | $ | 14.72 | | | | | $ | 15.70 | | |
12.0% | | | | $ | 10.39 | | | | | $ | 11.33 | | | | | $ | 12.28 | | | | | $ | 13.22 | | | | | $ | 14.16 | | | | | $ | 15.11 | | |
13.0% | | | | $ | 10.00 | | | | | $ | 10.91 | | | | | $ | 11.82 | | | | | $ | 12.73 | | | | | $ | 13.64 | | | | | $ | 14.55 | | |
14.0% | | | | $ | 9.63 | | | | | $ | 10.51 | | | | | $ | 11.39 | | | | | $ | 12.26 | | | | | $ | 13.14 | | | | | $ | 14.01 | | |
15.0% | | | | $ | 9.28 | | | | | $ | 10.13 | | | | | $ | 10.97 | | | | | $ | 11.82 | | | | | $ | 12.66 | | | | | $ | 13.50 | | |
Discount Rate | | | 100% | | | 110% | | | 120% | | | 130% | | | 140% | | | 150% | | ||||||||||||||||||
11.0% | | | | $ | 9.65 | | | | | $ | 10.61 | | | | | $ | 11.58 | | | | | $ | 12.54 | | | | | $ | 13.51 | | | | | $ | 14.47 | | |
12.0% | | | | $ | 9.29 | | | | | $ | 10.21 | | | | | $ | 11.14 | | | | | $ | 12.07 | | | | | $ | 13.00 | | | | | $ | 13.93 | | |
13.0% | | | | $ | 8.94 | | | | | $ | 9.84 | | | | | $ | 10.73 | | | | | $ | 11.62 | | | | | $ | 12.52 | | | | | $ | 13.41 | | |
14.0% | | | | $ | 8.61 | | | | | $ | 9.47 | | | | | $ | 10.34 | | | | | $ | 11.20 | | | | | $ | 12.06 | | | | | $ | 12.92 | | |
15.0% | | | | $ | 8.30 | | | | | $ | 9.13 | | | | | $ | 9.96 | | | | | $ | 10.79 | | | | | $ | 11.62 | | | | | $ | 12.45 | | |
National group | | ||||||||||||||||||||||||
| | | CZNC/ Monument Merger | | | 10th Percentile | | | Median | | | 90th percentile | | ||||||||||||
Deal Value to Tangible Book Value (%) | | | | | 166.9 | | | | | | 114.7 | | | | | | 165.8 | | | | | | 211.7 | | |
Deal Value to LTM Core Earnings (%) | | | | | 20.3 | | | | | | 14.7 | | | | | | 22.6 | | | | | | 35.3 | | |
Core Deposit Premium (%) | | | | | 8.3 | | | | | | 2.6 | | | | | | 10.5 | | | | | | 18.4 | | |
Deal Value to Assets (%) | | | | | 12.5 | | | | | | 9.7 | | | | | | 17.0 | | | | | | 23.4 | | |
Deal Value to Deposits (%) | | | | | 19.5 | | | | | | 12.0 | | | | | | 20.9 | | | | | | 25.8 | | |
TBV Multiple Buyer/Deal (x) | | | | | 1.09 | | | | | | 0.84 | | | | | | 1.09 | | | | | | 1.61 | | |
Regional group | | ||||||||||||||||||||||||
| | | CZNC/ Monument Merger | | | 10th Percentile | | | Median | | | 90th percentile | | ||||||||||||
Deal Value to Tangible Book Value (%) | | | | | 166.9 | | | | | | 138.4 | | | | | | 164.7 | | | | | | 194.2 | | |
Deal Value to LTM Core Earnings (%) | | | | | 20.3 | | | | | | 12.9 | | | | | | 20.0 | | | | | | 25.8 | | |
Core Deposit Premium (%) | | | | | 8.3 | | | | | | 4.1 | | | | | | 6.8 | | | | | | 11.7 | | |
Deal Value to Assets (%) | | | | | 12.5 | | | | | | 8.7 | | | | | | 12.2 | | | | | | 13.9 | | |
Deal Value to Deposits (%) | | | | | 19.5 | | | | | | 10.0 | | | | | | 13.4 | | | | | | 16.3 | | |
TBV Multiple Buyer/Deal (x) | | | | | 1.09 | | | | | | 0.88 | | | | | | 1.00 | | | | | | 1.19 | | |
Performance group | | ||||||||||||||||||||||||
| | | CZNC/ Monument Merger | | | 10th Percentile | | | Median | | | 90th percentile | | ||||||||||||
Deal Value to Tangible Book Value (%) | | | | | 166.9 | | | | | | 116.9 | | | | | | 147.1 | | | | | | 159.8 | | |
Deal Value to LTM Core Earnings (%) | | | | | 20.3 | | | | | | 19.1 | | | | | | 26.1 | | | | | | 29.1 | | |
Core Deposit Premium (%) | | | | | 8.3 | | | | | | 2.0 | | | | | | 6.3 | | | | | | 10.5 | | |
Deal Value to Assets (%) | | | | | 12.5 | | | | | | 8.6 | | | | | | 13.1 | | | | | | 20.7 | | |
Deal Value to Deposits (%) | | | | | 19.5 | | | | | | 10.0 | | | | | | 14.7 | | | | | | 22.5 | | |
TBV Multiple Buyer/Deal (x) | | | | | 1.09 | | | | | | 0.63 | | | | | | 1.29 | | | | | | 1.39 | | |
Annual Estimate Variance | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | | 15.0x | | | 16.0x | | ||||||||||||||||||
(15.0%) | | | | $ | 8.51 | | | | | $ | 9.28 | | | | | $ | 10.05 | | | | | $ | 10.82 | | | | | $ | 11.60 | | | | | $ | 12.37 | | |
(10.0%) | | | | $ | 9.01 | | | | | $ | 9.82 | | | | | $ | 10.64 | | | | | $ | 11.46 | | | | | $ | 12.28 | | | | | $ | 13.10 | | |
(5.0%) | | | | $ | 9.51 | | | | | $ | 10.37 | | | | | $ | 11.23 | | | | | $ | 12.10 | | | | | $ | 12.96 | | | | | $ | 13.83 | | |
0.0% | | | | $ | 10.01 | | | | | $ | 10.92 | | | | | $ | 11.83 | | | | | $ | 12.74 | | | | | $ | 13.64 | | | | | $ | 14.55 | | |
5.0% | | | | $ | 10.51 | | | | | $ | 11.46 | | | | | $ | 12.42 | | | | | $ | 13.37 | | | | | $ | 14.33 | | | | | $ | 15.28 | | |
10.0% | | | | $ | 11.01 | | | | | $ | 12.01 | | | | | $ | 13.01 | | | | | $ | 14.01 | | | | | $ | 15.01 | | | | | $ | 16.01 | | |
15.0% | | | | $ | 11.51 | | | | | $ | 12.55 | | | | | $ | 13.60 | | | | | $ | 14.65 | | | | | $ | 15.69 | | | | | $ | 16.74 | | |
Discount Rate | | | 11.0x | | | 12.5x | | | 14.0x | | | 15.5x | | | 17.0x | | | 18.5x | | ||||||||||||||||||
9.0% | | | | $ | 19.43 | | | | | $ | 21.52 | | | | | $ | 23.60 | | | | | $ | 25.69 | | | | | $ | 27.77 | | | | | $ | 29.86 | | |
10.0% | | | | $ | 18.75 | | | | | $ | 20.76 | | | | | $ | 22.77 | | | | | $ | 24.77 | | | | | $ | 26.78 | | | | | $ | 28.78 | | |
11.0% | | | | $ | 18.11 | | | | | $ | 20.04 | | | | | $ | 21.97 | | | | | $ | 23.90 | | | | | $ | 25.83 | | | | | $ | 27.76 | | |
12.0% | | | | $ | 17.49 | | | | | $ | 19.35 | | | | | $ | 21.21 | | | | | $ | 23.06 | | | | | $ | 24.92 | | | | | $ | 26.78 | | |
13.0% | | | | $ | 16.90 | | | | | $ | 18.69 | | | | | $ | 20.48 | | | | | $ | 22.27 | | | | | $ | 24.06 | | | | | $ | 25.85 | | |
Discount Rate | | | 140% | | | 155% | | | 170% | | | 185% | | | 200% | | | 215% | | ||||||||||||||||||
9.0% | | | | $ | 21.94 | | | | | $ | 23.85 | | | | | $ | 25.76 | | | | | $ | 27.66 | | | | | $ | 29.57 | | | | | $ | 31.48 | | |
10.0% | | | | $ | 21.16 | | | | | $ | 23.00 | | | | | $ | 24.84 | | | | | $ | 26.67 | | | | | $ | 28.51 | | | | | $ | 30.35 | | |
11.0% | | | | $ | 20.43 | | | | | $ | 22.19 | | | | | $ | 23.96 | | | | | $ | 25.73 | | | | | $ | 27.50 | | | | | $ | 29.26 | | |
12.0% | | | | $ | 19.72 | | | | | $ | 21.42 | | | | | $ | 23.12 | | | | | $ | 24.83 | | | | | $ | 26.53 | | | | | $ | 28.23 | | |
13.0% | | | | $ | 19.05 | | | | | $ | 20.69 | | | | | $ | 22.32 | | | | | $ | 23.96 | | | | | $ | 25.60 | | | | | $ | 27.24 | | |
| Growth Rate | | | 11.5x | | | 12.0x | | | 12.5x | | | 13.0x | | | 13.5x | | |||||||||||||||
| 5.0% | | | | $ | 16.58 | | | | | $ | 17.30 | | | | | $ | 18.03 | | | | | $ | 18.75 | | | | | $ | 19.47 | | |
| 7.5% | | | | | 18.22 | | | | | | 19.01 | | | | | | 19.80 | | | | | | 20.60 | | | | | | 21.39 | | |
| 10.0% | | | | | 19.98 | | | | | | 20.84 | | | | | | 21.71 | | | | | | 22.58 | | | | | | 23.45 | | |
| 12.5% | | | | | 21.85 | | | | | | 22.80 | | | | | | 23.75 | | | | | | 24.70 | | | | | | 25.66 | | |
| 15.0% | | | | | 23.86 | | | | | | 24.90 | | | | | | 25.94 | | | | | | 26.98 | | | | | | 28.01 | | |
Annual Estimate Variance | | | 11.0x | | | 12.5x | | | 14.0x | | | 15.5x | | | 17.0x | | | 18.5x | | ||||||||||||||||||
(15.0%) | | | | $ | 14.94 | | | | | $ | 16.46 | | | | | $ | 17.98 | | | | | $ | 19.50 | | | | | $ | 21.02 | | | | | $ | 22.54 | | |
(10.0%) | | | | $ | 15.59 | | | | | $ | 17.20 | | | | | $ | 18.81 | | | | | $ | 20.43 | | | | | $ | 22.04 | | | | | $ | 23.65 | | |
(5.0%) | | | | $ | 16.25 | | | | | $ | 17.95 | | | | | $ | 19.65 | | | | | $ | 21.35 | | | | | $ | 23.05 | | | | | $ | 24.75 | | |
0.0% | | | | $ | 16.90 | | | | | $ | 18.69 | | | | | $ | 20.49 | | | | | $ | 22.28 | | | | | $ | 24.07 | | | | | $ | 25.86 | | |
5.0% | | | | $ | 17.56 | | | | | $ | 19.44 | | | | | $ | 21.32 | | | | | $ | 23.20 | | | | | $ | 25.08 | | | | | $ | 26.96 | | |
10.0% | | | | $ | 18.22 | | | | | $ | 20.19 | | | | | $ | 22.16 | | | | | $ | 24.12 | | | | | $ | 26.09 | | | | | $ | 28.06 | | |
15.0% | | | | $ | 18.87 | | | | | $ | 20.93 | | | | | $ | 22.99 | | | | | $ | 25.05 | | | | | $ | 27.11 | | | | | $ | 29.17 | | |
| Growth Rate | | | 1.16x | | | 1.21x | | | 1.26x | | | 1.31x | | | 1.36x | | |||||||||||||||
| 5.0% | | | | $ | 18.09 | | | | | $ | 18.87 | | | | | $ | 19.65 | | | | | $ | 20.43 | | | | | $ | 21.21 | | |
| 7.5% | | | | | 18.48 | | | | | | 19.28 | | | | | | 20.07 | | | | | | 20.87 | | | | | | 21.67 | | |
| 10.0% | | | | | 18.89 | | | | | | 19.70 | | | | | | 20.52 | | | | | | 21.33 | | | | | | 22.14 | | |
| 12.5% | | | | | 19.32 | | | | | | 20.15 | | | | | | 20.98 | | | | | | 21.81 | | | | | | 22.65 | | |
| 15.0% | | | | | 19.77 | | | | | | 20.62 | | | | | | 21.47 | | | | | | 22.32 | | | | | | 23.17 | | |
Name and Principal Position | | | Year | | | Salary | | | All other Compensation | | | Total | | ||||||||||||
Clark S. Frame, Chairman of the Board of Directors | | | | | 2018 | | | | | $ | 253,895(1) | | | | | $ | 20,224(2) | | | | | $ | 274,119 | | |
Name and Principal Position | | | Year | | | Fees Earned or Paid in Cash(1) | | | Total | | |||||||||
Stephen M. Dorwart, Non-Employee Director of Covenant and Covenant Bank | | | | | 2019 | | | | | $ | 44,320 | | | | | $ | 44,320 | | |
Robert G. Loughery, Non-Employee Director of Covenant and Covenant Bank | | | | | 2019 | | | | | $ | 21,160 | | | | | $ | 21,160 | | |
Name of Individual | | | Position with Bank | | | Amount and Nature of Beneficial Ownership | | | Percent of Class* | | ||||||
Clark S. Frame | | | Director/Chairman of the Board | | | | | 161,328(1) | | | | | | 10.31% | | |
John C. Soffronoff | | | Director/Vice Chairman | | | | | 40,000(2) | | | | | | 2.56% | | |
Christopher A. Nardo | | | President and CEO, Director | | | | | 14,057(3) | | | | | | 0.90% | | |
Michael J. Battista | | | Director | | | | | 140,880(4) | | | | | | 9.00% | | |
David C. Frame, MD | | | Director | | | | | 113,692(5) | | | | | | 7.25% | | |
Thomas E. Mackell, MD | | | Director | | | | | 89,610(6) | | | | | | 5.71% | | |
Barry J. Miles, Sr. | | | Director | | | | | 35,000(7) | | | | | | 2.24% | | |
Brian R. Rich | | | Director | | | | | 88,890(8) | | | | | | 5.67% | | |
Richard F. Ryon | | | Director | | | | | 142,000(9) | | | | | | 9.08% | | |
Gerald Schatz | | | Director | | | | | 54,615(10) | | | | | | 3.48% | | |
Irving N. Stein | | | Director | | | | | 67,780(11) | | | | | | 4.33% | | |
David E. Thompson | | | Director | | | | | 13,420(12) | | | | | | 0.86% | | |
John A. Zebrowski | | | Director | | | | | 70,460(13) | | | | | | 4.50% | | |
G. Brian Cooper | | | Chief Financial Officer | | | | | 9,431(14) | | | | | | 0.60% | | |
Benjamin T. Crowley | | | Vice-President Retail Banking | | | | | 5,000(15) | | | | | | 0.32% | | |
Michelle A. Pedersen | | | Chief Lending Officer | | | | | 49,445(16) | | | | | | 3.16% | | |
All Directors and Executive Officers as a Group | | | | | | | | 1,095,608 | | | | | | 68.71% | | |
Name of Individual | | | Position with Bank | | | Amount and Nature of Beneficial Ownership | | | Percent of Class* | | ||||||
Donald P. Worthington | | | Chairman of the Board, Director | | | | | 149,563(1) | | | | | | 3.38% | | |
John C. Spier | | | President and CEO, Director | | | | | 154,167(2) | | | | | | 3.47% | | |
Albert Jinks | | | Director | | | | | 307,315(3) | | | | | | 6.97% | | |
Lou Quattrocchi | | | Vice Chairman of the Board, Director | | | | | 60,695(4) | | | | | | 1.37% | | |
Harold Middleburg MD | | | Director | | | | | 105,319(5) | | | | | | 2.39% | | |
Stephen M. Dorwart | | | Director | | | | | 105,354(6) | | | | | | 2.39% | | |
Elliot Norry | | | Director | | | | | 64,949(7) | | | | | | 1.47% | | |
Michael Zirolli | | | Director | | | | | 101,970(8) | | | | | | 2.31% | | |
Thomas J. Profy IV | | | Director | | | | | 60,660(9) | | | | | | 1.38% | | |
Gregory E. Grim | | | Director | | | | | 98,953(10) | | | | | | 2.25% | | |
D. Rodman Eastburn | | | Director | | | | | 17,021(11) | | | | | | * | | |
Robert G. Loughery | | | Director | | | | | 8,021(12) | | | | | | * | | |
Carolina Cabrera DiGiorgio | | | Director | | | | | 2,188(13) | | | | | | * | | |
William K. Poole | | | Director | | | | | 100,188(14) | | | | | | 2.28% | | |
Carl E. White, Jr. | | | Director | | | | | 16,270(15) | | | | | | * | | |
Blair T. Rush | | | EVP, Director, President and Chief Operating Officer of Covenant Bank | | | | | 60,000(16) | | | | | | 1.35% | | |
Kelley A. Cwiklinski | | | EVP, Chief Lending Officer | | | | | 74,600(17) | | | | | | 1.68% | | |
Aaron Sattler | | | EVP, Chief Financial Officer | | | | | 53,170(18) | | | | | | 1.20% | | |
Nancy Krulla | | | EVP, Bank Administrative Officer | | | | | 145,697(19) | | | | | | 3.31% | | |
All Directors and Executive Officers as a Group | | | | | | | | 1,686,100(20) | | | | | | 34.90% | | |
Information furnished by directors and executive officers. | | | |
| | | At December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | | | | $ | 53,098 | | | | | | 13% | | | | | $ | 60,702 | | | | | | 15% | | | | | $ | 65,494 | | | | | | 17% | | | | | $ | 67,289 | | | | | | 23% | | | | | $ | 58,938 | | | | | | 29% | | |
Commercial real estate | | | | | 361,199 | | | | | | 86% | | | | | | 331,031 | | | | | | 83% | | | | | | 306,367 | | | | | | 81% | | | | | | 223,969 | | | | | | 76% | | | | | | 142,326 | | | | | | 70% | | |
Residential real estate | | | | | 7,402 | | | | | | 2% | | | | | | 7,144 | | | | | | 2% | | | | | | 5,051 | | | | | | 1% | | | | | | 3,163 | | | | | | 1% | | | | | | 1,694 | | | | | | 1% | | |
Consumer, other | | | | | 226 | | | | | | 0% | | | | | | 1,523 | | | | | | 0% | | | | | | 356 | | | | | | 0% | | | | | | 104 | | | | | | 0% | | | | | | 85 | | | | | | 0% | | |
Total Gross Loans | | | | | 421,925 | | | | | | 100% | | | | | | 400,400 | | | | | | 100% | | | | | | 377,268 | | | | | | 100% | | | | | | 294,525 | | | | | | 100% | | | | | | 203,043 | | | | | | 100% | | |
Unearned net loan origination fees and costs | | | ��� | | (779) | | | | | | | | | | | | (926) | | | | | | | | | | | | (970) | | | | | | | | | | | | (738) | | | | | | | | | | | | (627) | | | | | | | | |
Less: Allowance for loan losses | | | | | (3,963) | | | | | | | | | | | | (4,584) | | | | | | | | | | | | (4,673) | | | | | | | | | | | | (6,530) | | | | | | | | | | | | (2,763) | | | | | | | | |
Net Loans | | | | $ | 417,183 | | | | | | | | | | | $ | 394,890 | | | | | | | | | | | $ | 371,625 | | | | | | | | | | | $ | 287,257 | | | | | | | | | | | $ | 199,653 | | | | | | | | |
|
| | | As of December 31, 2019 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Fixed-Rate Loans | | | Variable- or Adjustable-Rate Loans | | ||||||||||||||||||||||||||||||||||||||||||
| | | 1 Year or Less | | | 1 – 5 Year | | | > 5 Year | | | Total | | | 1 Year or Less | | | 1 – 5 Year | | | > 5 Year | | | Total | | ||||||||||||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | | | | $ | 2,022 | | | | | $ | 18,680 | | | | | $ | 892 | | | | | $ | 21,594 | | | | | $ | 22,436 | | | | | $ | 5,882 | | | | | $ | 3,186 | | | | | $ | 31,504 | | |
Commercial real estate | | | | | 10,857 | | | | | | 161,107 | | | | | | 17,050 | | | | | | 189,014 | | | | | | 27,144 | | | | | | 11,359 | | | | | | 133,682 | | | | | | 172,185 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 182 | | | | | | 2,252 | | | | | | 4,968 | | | | | | 7,402 | | |
Consumer, other | | | | | 15 | | | | | | 102 | | | | | | — | | | | | | 117 | | | | | | 109 | | | | | | — | | | | | | — | | | | | | 109 | | |
Total | | | | $ | 12,894 | | | | | $ | 179,889 | | | | | $ | 17,942 | | | | | $ | 210,725 | | | | | $ | 49,871 | | | | | $ | 19,493 | | | | | $ | 141,836 | | | | | $ | 211,200 | | |
|
| | | At December 31, | | |||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | ||||||||||||||||||||||||||||||
| | | Commercial and Industrial | | | Commercial Real Estate | | | Total | | | Commercial and Industrial | | | Commercial Real Estate | | | Total | | ||||||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||||||||||||||
Pass | | | | $ | 48,417 | | | | | $ | 355,164 | | | | | $ | 403,581 | | | | | $ | 56,664 | | | | | $ | 325,651 | | | | | $ | 382,315 | | |
Special Mention | | | | | — | | | | | | 50 | | | | | | 50 | | | | | | — | | | | | | 255 | | | | | | 255 | | |
Substandard | | | | | 3,694 | | | | | | 5,923 | | | | | | 9,617 | | | | | | 4,038 | | | | | | 5,125 | | | | | | 9,163 | | |
Doubtful | | | | | 987 | | | | | | 62 | | | | | | 1,049 | | | | | | — | | | | | | — | | | | | | — | | |
Total classified | | | | | 4,681 | | | | | | 6,035 | | | | | | 10,716 | | | | | | 4,038 | | | | | | 5,380 | | | | | | 9,418 | | |
Total loans | | | | $ | 53,098 | | | | | $ | 361,199 | | | | | $ | 414,297 | | | | | $ | 60,702 | | | | | $ | 331,031 | | | | | $ | 391,733 | | |
| | | At December 31, 2019 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | 90 Days or Greater Past Due | | | Total Past Due | | | Nonaccrual | | | Current | | | Total Loans Receivable | | | 90 days or Greater Past Due and Still Accruing | | ||||||||||||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | | | | $ | 446 | | | | | $ | — | | | | | $ | — | | | | | $ | 446 | | | | | $ | 1,193 | | | | | $ | 51,459 | | | | | $ | 53,098 | | | | | $ | — | | |
Commercial real estate | | | | | 132 | | | | | | — | | | | | | — | | | | | | 132 | | | | | | 1,408 | | | | | | 359,659 | | | | | | 361,199 | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,402 | | | | | | 7,402 | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 226 | | | | | | 226 | | | | | | — | | |
Total | | | | $ | 578 | | | | | $ | — | | | | | $ | — | | | | | $ | 578 | | | | | $ | 2,601 | | | | | $ | 418,746 | | | | | $ | 421,925 | | | | | $ | — | | |
|
| | | At December 31, 2018 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | 90 Days or Greater Past Due | | | Total Past Due | | | Nonaccrual | | | Current | | | Total Loans Receivable | | | 90 days or Greater Past Due and Still Accruing | | ||||||||||||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | | | | $ | 160 | | | | | $ | 41 | | | | | $ | — | | | | | $ | 201 | | | | | $ | 2,042 | | | | | $ | 58,459 | | | | | $ | 60,702 | | | | | $ | — | | |
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,359 | | | | | | 327,672 | | | | | | 331,031 | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,144 | | | | | | 7,144 | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,523 | | | | | | 1,523 | | | | | | — | | |
Total | | | | $ | 160 | | | | | $ | 41 | | | | | $ | — | | | | | $ | 201 | | | | | $ | 5,401 | | | | | $ | 394,798 | | | | | $ | 400,400 | | | | | $ | — | | |
|
| | | As of December 31, | | |||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | |||||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||||||||
Nonaccrual loans | | | | $ | 2,601 | | | | | $ | 5,401 | | | | | $ | 3,024 | | | | | $ | 8,616 | | | | | $ | 2,809 | | |
Loans past due 90 days or more and still accruing | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 292 | | |
Total nonperforming loans | | | | | 2,601 | | | | | | 5,401 | | | | | | 3,024 | | | | | | 8,616 | | | | | | 3,101 | | |
Other real estate owned (OREO) | | | | | 1,323 | | | | | | 92 | | | | | | 493 | | | | | | 1,088 | | | | | | 1,609 | | |
Total nonperforming assets | | | | $ | 3,924 | | | | | $ | 5,493 | | | | | $ | 3,517 | | | | | $ | 9,704 | | | | | $ | 4,709 | | |
Loans subject to troubled debt restructurings (TDRs): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | | | $ | 273 | | | | | $ | 387 | | | | | $ | 790 | | | | | $ | — | | | | | $ | — | | |
Nonperforming | | | | | 249 | | | | | | 928 | | | | | | 416 | | | | | | 1,738 | | | | | | 704 | | |
Total TDRs | | | | $ | 522 | | | | | $ | 1,315 | | | | | $ | 1,206 | | | | | $ | 1,738 | | | | | $ | 704 | | |
Asset quality ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total nonperforming loans to total loans | | | | | 0.62% | | | | | | 1.35% | | | | | | 0.80% | | | | | | 2.93% | | | | | | 1.53% | | |
Total nonperforming assets to total assets | | | | | 0.76% | | | | | | 1.15% | | | | | | 0.79% | | | | | | 2.74% | | | | | | 1.79% | | |
Allowance for loan losses to total loans | | | | | 0.94% | | | | | | 1.15% | | | | | | 1.24% | | | | | | 2.22% | | | | | | 1.37% | | |
Allowance for loan losses to nonperforming loans | | | | | 152.36% | | | | | | 84.87% | | | | | | 154.53% | | | | | | 75.79% | | | | | | 89.11% | | |
| | | At or for the Years Ended December 31, | | |||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | |||||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 4,584 | | | | | $ | 4,673 | | | | | $ | 6,530 | | | | | $ | 2,763 | | | | | $ | 3,281 | | |
Provision for loan losses | | | | | 460 | | | | | | 2,931 | | | | | | 2,636 | | | | | | 4,416 | | | | | | 1,455 | | |
Chargeoffs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | | | (1,257) | | | | | | (3,114) | | | | | | (2,712) | | | | | | (581) | | | | | | (241) | | |
Commercial real estate | | | | | (124) | | | | | | (1,822) | | | | | | (118) | | | | | | (1,545) | | | | | | | | |
Residential real estate | | | | | (214) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total chargeoffs | | | | | (1,257) | | | | | | (3,238) | | | | | | (4,534) | | | | | | (699) | | | | | | (2,000) | | |
Recoveries: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | | | 71 | | | | | | 129 | | | | | | 1 | | | | | | 3 | | | | | | 27 | | |
Commercial real estate | | | | | 105 | | | | | | 14 | | | | | | 40 | | | | | | 47 | | | | | | | | |
Residential real estate | | | | | 75 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total recoveries | | | | | 176 | | | | | | 218 | | | | | | 41 | | | | | | 50 | | | | | | 27 | | |
Net (chargeoffs) recoveries | | | | | (1,081) | | | | | | (3,020) | | | | | | (4,493) | | | | | | (649) | | | | | | (1,973) | | |
Ending balance | | | | $ | 3,963 | | | | | $ | 4,584 | | | | | $ | 4,673 | | | | | $ | 6,530 | | | | | $ | 2,763 | | |
Net (chargeoffs) recoveries to average loans during the year | | | | | -0.26% | | | | | | -0.77% | | | | | | -1.30% | | | | | | -0.28% | | | | | | -1.07% | | |
| | | At December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Allowance for Loan Losses | | | Percent of Allocated Allowance | | | Percent of Loans to Gross Loans | | | Allowance for Loan Losses | | | Percent of Allocated Allowance | | | Percent of Loans to Gross Loans | | | Allowance for Loan Losses | | | Percent of Allocated Allowance | | | Percent of Loans to Gross Loans | | |||||||||||||||||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | | | | $ | 1,529 | | | | | | 43% | | | | | | 13% | | | | | $ | 1,716 | | | | | | 43% | | | | | | 15% | | | | | $ | 1,593 | | | | | | 35% | | | | | | 17% | | |
Commercial real estate | | | | | 2,013 | | | | | | 57% | | | | | | 86% | | | | | | 2,262 | | | | | | 57% | | | | | | 83% | | | | | | 2,964 | | | | | | 65% | | | | | | 81% | | |
Residential real estate | | | | | 8 | | | | | | 0% | | | | | | 2% | | | | | | 14 | | | | | | 0% | | | | | | 2% | | | | | | 13 | | | | | | 0% | | | | | | 1% | | |
Consumer, other | | | | | — | | | | | | 0% | | | | | | 0% | | | | | | 5 | | | | | | 0% | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | 0% | | |
Total allocated allowance | | | | | 3,550 | | | | | | 100% | | | | | | 100% | | | | | | 3,997 | | | | | | 100% | | | | | | 100% | | | | | | 4,570 | | | | | | 100% | | | | | | 100% | | |
Unallocated | | | | | 413 | | | | | | | | | | | | | | | | | | 587 | | | | | | | | | | | | | | | | | | 103 | | | | | | | | | | | | | | |
Total | | | | $ | 3,963 | | | | | | | | | | | | | | | | | $ | 4,584 | | | | | | | | | | | | | | | | | $ | 4,673 | | | | | | | | | | | | | | |
|
| | | At December 31, | | |||||||||||||||||||||||||||||||||
| | | 2016 | | | 2015 | | ||||||||||||||||||||||||||||||
| | | Allowance for Loan Losses | | | Percent of Allocated Allowance | | | Percent of Loans to Gross Loans | | | Allowance for Loan Losses | | | Percent of Allocated Allowance | | | Percent of Loans to Gross Loans | | ||||||||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||||||||||||||
Commercial and industrial | | | | $ | 3,533 | | | | | | 54% | | | | | | 23% | | | | | $ | 904 | | | | | | 33% | | | | | | 29% | | |
Commercial real estate | | | | | 2,950 | | | | | | 45% | | | | | | 76% | | | | | | 1,842 | | | | | | 67% | | | | | | 70% | | |
Residential real estate | | | | | 8 | | | | | | 0% | | | | | | 1% | | | | | | 1 | | | | | | 0% | | | | | | 1% | | |
Consumer, other | | | | | — | | | | | | 0% | | | | | | 0% | | | | | | 16 | | | | | | 1% | | | | | | 0% | | |
Total allocated allowance | | | | | 6,491 | | | | | | 100% | | | | | | 100% | | | | | | 2,763 | | | | | | 100% | | | | | | 100% | | |
Unallocated | | | | | 39 | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | |
Total | | | | $ | 6,530 | | | | | | | | | | | | | | | | | $ | 2,763 | | | | | | | | | | | | | | |
| | | At December 31, 2019 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
AVAILABLE FOR SALE | | | | | | | | | | | | | | | | | | | | | | | | | |
U. S. Treasury bills | | | | $ | 10,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 10,000 | | |
Mortgage-backed securities – | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government-sponsored entities – residential | | | | | 3,883 | | | | | | 5 | | | | | | (32) | | | | | | 3,856 | | |
Corporate debt securities | | | | | 2,000 | | | | | | 40 | | | | | | — | | | | | | 2,040 | | |
State and municipal securities | | | | | 3,094 | | | | | | 68 | | | | | | — | | | | | | 3,162 | | |
SBA asset-backed securities | | | | | 2,764 | | | | | | 17 | | | | | | — | | | | | | 2,781 | | |
Total | | | | $ | 21,741 | | | | | $ | 130 | | | | | $ | (32) | | | | | $ | 21,839 | | |
HELD TO MATURITY – Corporate debt securities | | | | $ | 1,000 | | | | | $ | 36 | | | | | $ | — | | | | | $ | 1,036 | | |
|
| | | At December 31, 2018 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
AVAILABLE FOR SALE | | | | | | | | | | | | | | | | | | | | | | | | | |
U. S. Treasury bills | | | | $ | 9,999 | | | | | $ | 2 | | | | | $ | — | | | | | $ | 10,000 | | |
Mortgage-backed securities – | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government-sponsored entities – residential | | | | | 5,370 | | | | | | — | | | | | | (136) | | | | | | 5,234 | | |
Corporate debt securities | | | | | 2,000 | | | | | | 43 | | | | | | (6) | | | | | | 2,038 | | |
State and municipal securities | | | | | 2,511 | | | | | | 14 | | | | | | (4) | | | | | | 2,521 | | |
SBA asset-backed securities | | | | | 2,205 | | | | | | 1 | | | | | | (9) | | | | | | 2,197 | | |
Total | | | | $ | 22,085 | | | | | $ | 60 | | | | | $ | (155) | | | | | $ | 21,990 | | |
HELD TO MATURITY – Corporate debt securities | | | | $ | 1,000 | | | | | $ | — | | | | | $ | (6) | | | | | $ | 994 | | |
|
| | | At December 31, 2017 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
AVAILABLE FOR SALE | | | | | | | | | | | | | | | | | | | | | | | | | |
U. S. Treasury bills | | | | $ | 9,999 | | | | | $ | 1 | | | | | $ | — | | | | | $ | 10,000 | | |
Mortgage-backed securities – | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government-sponsored entities – residential | | | | | 6,993 | | | | | | 2 | | | | | | (112) | | | | | | 6,883 | | |
Corporate debt securities | | | | | 2,000 | | | | | | 28 | | | | | | (2) | | | | | | 2,026 | | |
State and municipal securities | | | | | 2,564 | | | | | | 3 | | | | | | (11) | | | | | | 2,556 | | |
SBA asset-backed securities | | | | | 2,789 | | | | | | 2 | | | | | | (9) | | | | | | 2,782 | | |
Total | | | | $ | 24,345 | | | | | $ | 36 | | | | | $ | (134) | | | | | $ | 24,247 | | |
HELD TO MATURITY – Corporate debt securities | | | | $ | 500 | | | | | $ | 13 | | | | | $ | — | | | | | $ | 513 | | |
|
| | | Within One Year | | | More than One Year Through Five Years | | | More than Five Years Through ten Years | | | Due After Ten Years | | | Total | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Fair Value | | | Average Weighted Yield | | |||||||||||||||||||||||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available For Sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U. S. Treasury bills | | | | $ | 10,000 | | | | | | 1.42% | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | 10,000 | | | | | $ | 10,000 | | | | | | 1.42% | | |
Mortgage-backed securities – U.S. government-sponsored entities – residential | | | | | — | | | | | | — | | | | | | 3,534 | | | | | | 1.72% | | | | | | 349 | | | | | | 2.58% | | | | | | — | | | | | | — | | | | | | 3,883 | | | | | | 3,856 | | | | | | 1.80% | | |
Corporate debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | 0% | | | | | | 2,000 | | | | | | 5.44% | | | | | | — | | | | | | — | | | | | | 2,000 | | | | | | 2,040 | | | | | | 5.44% | | |
State and municipal securities | | | | | 1,367 | | | | | | 3.32% | | | | | | 913 | | | | | | 2.59% | | | | | | 569 | | | | | | 4.34% | | | | | | 245 | | | | | | 3.00% | | | | | | 3,094 | | | | | | 3,162 | | | | | | 3.27% | | |
SBA asset-backed securities | | | | | — | | | | | | 2,764 | | | | | | 3.25% | | | | | | — | | | | | | — | | | | | | 2,764 | | | | | | 2,781 | | | | | | 3.25% | | | | | | | | | | | | | | | | | | | | |
Total Available for Sale | | | | $ | 11,367 | | | | | | 1.65% | | | | | $ | 7,211 | | | | | | 2.42% | | | | | $ | 2,918 | | | | | | 4.88% | | | | | $ | 245 | | | | | | 3.00% | | | | | $ | 21,741 | | | | | $ | 21,839 | | | | | | 2.35% | | |
Total Held to Maturity – Corporate debt securities | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | 1,000 | | | | | | 6.25% | | | | | $ | — | | | | | | — | | | | | $ | 1,000 | | | | | $ | 1,036 | | | | | | 6.25% | | |
|
| | | Year Ended December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Average Amount | | | Percent | | | Average Rate | | | Average Amount | | | Percent | | | Average Rate | | | Average Amount | | | Percent | | | Average Rate | | |||||||||||||||||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Demand, noninterest-bearing | | | | $ | 70,292 | | | | | | 18.85% | | | | | | — | | | | | $ | 69,424 | | | | | | 19.17% | | | | | | — | | | | | $ | 62,739 | | | | | | 19.63% | | | | | | — | | |
Demand, interest -bearing | | | | | 55,505 | | | | | | 14.88% | | | | | | 0.34% | | | | | | 53,074 | | | | | | 14.66% | | | | | | 0.30% | | | | | | 48,365 | | | | | | 15.13% | | | | | | 0.29% | | |
Money market accounts | | | | | 124,668 | | | | | | 33.42% | | | | | | 1.77% | | | | | | 119,161 | | | | | | 32.91% | | | | | | 1.50% | | | | | | 123,215 | | | | | | 38.55% | | | | | | 0.91% | | |
Savings | | | | | 5,120 | | | | | | 1.37% | | | | | | 0.26% | | | | | | 3,299 | | | | | | 0.91% | | | | | | 0.25% | | | | | | 3,454 | | | | | | 1.08% | | | | | | 0.26% | | |
Time, $100,000 and over | | | | | 90,244 | | | | | | 24.19% | | | | | | 2.29% | | | | | | 102,762 | | | | | | 28.38% | | | | | | 1.92% | | | | | | 74,742 | | | | | | 23.38% | | | | | | 1.42% | | |
Time, other | | | | | 27,171 | | | | | | 7.29% | | | | | | 2.44% | | | | | | 14,361 | | | | | | 3.97% | | | | | | 1.97% | | | | | | 7,111 | | | | | | 2.22% | | | | | | 1.48% | | |
| | | | $ | 373,000 | | | | | | 100.00% | | | | | | 1.38% | | | | | $ | 362,081 | | | | | | 100.00% | | | | | | 1.16% | | | | | $ | 319,626 | | | | | | 100.00% | | | | | | 0.76% | | |
|
Maturity Period: | | | (In thousands) | | |||
Three months or less | | | | $ | 22,058 | | |
Over three through six months | | | | | 4,293 | | |
Over six through twelve months | | | | | 27,041 | | |
Over twelve months | | | | | 36,909 | | |
Total | | | | $ | 90,301 | | |
| | | At or For the Year Ended December 31, | | |||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||
| | | (Dollars in thousands) | | |||||||||||||||
Federal Home Loan Bank advances: | | | | | | | | | | | | | | | | | | | |
Balance outstanding at end of year | | | | $ | 61,000 | | | | | $ | 60,500 | | | | | $ | 51,900 | | |
Weighted average interest rate at end of year | | | | | 2.05% | | | | | | 2.05% | | | | | | 1.79% | | |
Maximum amount outstanding at any month end | | | | | 68,000 | | | | | | 66,900 | | | | | | 51,900 | | |
Average balance outstanding during the year | | | | | 62,061 | | | | | | 61,819 | | | | | | 43,524 | | |
Weighted average interest during the year | | | | | 2.08% | | | | | | 2.02% | | | | | | 1.66% | | |
Federal funds purchased: | | | | | | | | | | | | | | | | | | | |
Balance outstanding at end of year | | | | $ | — | | | | | $ | 3,000 | | | | | $ | — | | |
Weighted average interest rate at end of year | | | | | 2.62% | | | | | | | | | | | | | | |
Maximum amount outstanding at any month end | | | | | 3,000 | | | | | | 3,000 | | | | | | 5,500 | | |
Average balance outstanding during the year | | | | | 37 | | | | | | 10 | | | | | | 320 | | |
Weighted average interest during the year | | | | | 1.66% | | | | | | 0.52% | | | | | | 0.81% | | |
Line of credit advances ACBB: | | | | | | | | | | | | | | | | | | | |
Balance outstanding at end of year | | | | $ | 3,000 | | | | | $ | 3,000 | | | | | $ | 3,000 | | |
Weighted average interest rate at end of year | | | | | 5.13% | | | | | | 6.00% | | | | | | 5.00% | | |
Maximum amount outstanding at any month end | | | | | 3,000 | | | | | | 3,000 | | | | | | 3,000 | | |
Average balance outstanding during the year | | | | | 3,000 | | | | | | 3,000 | | | | | | 3,000 | | |
Weighted average interest during the year | | | | | 5.85% | | | | | | 5.48% | | | | | | 4.66% | | |
| | | December 2017 | | | December 2016 | | ||||||||||||||||||||||||||||||
(In Thousands) | | | Average Balance(1) | | | Tax-equivalent Interest(2) | | | Tax-equivalent Rate | | | Average Balance(1) | | | Tax-equivalent Interest(2) | | | Tax-equivalent Rate | | ||||||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial loans (net) | | | | $ | 223,856 | | | | | $ | 10,470 | | | | | | 4.63% | | | | | $ | 196,878 | | | | | $ | 9,251 | | | | | | 4.65% | | |
Mortgage loan held for sale | | | | | 104 | | | | | | 4 | | | | | | 4.14% | | | | | | 1,157 | | | | | | 44 | | | | | | 3.80% | | |
Investment securities | | | | | 39,478 | | | | | | 836 | | | | | | 2.12% | | | | | | 32,105 | | | | | | 518 | | | | | | 1.61% | | |
Tax free investment securities | | | | | 34,085 | | | | | | 1,460 | | | | | | 4.28% | | | | | | 38,121 | | | | | | 1,622 | | | | | | 4.25% | | |
Fed funds sold | | | | | 1,833 | | | | | | 19 | | | | | | 1.06% | | | | | | 6,545 | | | | | | 33 | | | | | | 0.50% | | |
FHLB stock | | | | | 4,968 | | | | | | 245 | | | | | | 4.93% | | | | | | 4,708 | | | | | | 244 | | | | | | 5.18% | | |
FHLB cash account | | | | | 391 | | | | | | 4 | | | | | | 0.91% | | | | | | 395 | | | | | | 1 | | | | | | 0.27% | | |
Total interest earning assets | | | | | 304,717 | | | | | | 13,038 | | | | | | 4.28% | | | | | | 279,910 | | | | | | 11,712 | | | | | | 4.18% | | |
Noninterest earning assets | | | | | 8,389 | | | | | | | | | | | | | | | | | | 6,376 | | | | | | | | | | | | | | |
Total assets | | | | $ | 313,106 | | | | | | | | | | | | | | | | | $ | 286,285 | | | | | | | | | | | | | | |
|
| | | December 2017 | | | December 2016 | | ||||||||||||||||||||||||||||||
(In Thousands) | | | Average Balance(1) | | | Tax-equivalent Interest(2) | | | Tax-equivalent Rate | | | Average Balance(1) | | | Tax-equivalent Interest(2) | | | Tax-equivalent Rate | | ||||||||||||||||||
Liabilities and Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing demand deposits | | | | $ | 10,954 | | | | | $ | 16 | | | | | | 0.14% | | | | | $ | 9,644 | | | | | $ | 15 | | | | | | 0.15% | | |
Money maret and savings deposits | | | | | 49,031 | | | | | | 322 | | | | | | 0.66% | | | | | | 33,116 | | | | | | 149 | | | | | | 0.45% | | |
Certificates of deposit | | | | | 116,287 | | | | | | 1,732 | | | | | | 1.49% | | | | | | 126,813 | | | | | | 1,905 | | | | | | 1.50% | | |
Borrowed funds | | | | | 77,839 | | | | | | 880 | | | | | | 1.13% | | | | | | 67,827 | | | | | | 662 | | | | | | 0.98% | | |
Subordinated debt | | | | | 10,733 | | | | | | 807 | | | | | | 7.52% | | | | | | 5,390 | | | | | | 399 | | | | | | 7.40% | | |
Total Interest bearing liabilities | | | | | 264,844 | | | | | | 3,756 | | | | | | 1.42% | | | | | | 242,790 | | | | | | 3,130 | | | | | | 1.29% | | |
Non interest bearing liabilities and equity | | | | | 48,262 | | | | | | | | | | | | | | | | | | 43,495 | | | | | | | | | | | | | | |
Total liabilities and equity | | | | $ | 313,106 | | | | | | | | | | | | | | | | | $ | 286,285 | | | | | | | | | | | | | | |
Tax-equivalent net interest income/net interest spread | | | | | | | | | | | 9,282 | | | | | | 2.86% | | | | | | | | | | | | 8,582 | | | | | | 2.90% | | |
Tax-equivalent net interest margin(3) | | | | | | | | | | | | | | | | | 3.05% | | | | | | | | | | | | | | | | | | 3.07% | | |
Tax-equivalentadjustment | | | | | | | | | | | 496 | | | | | | | | | | | | | | | | | | 551 | | | | | | | | |
Net interest income | | | | | | | | | | $ | 8,786 | | | | | | | | | | | | | | | | | $ | 8,031 | | | | | | | | |
Net interest earning assets | | | | $ | 39,873 | | | | | | | | | | | | | | | | | $ | 37,119 | | | | | | | | | | | | | | |
Average interest earning assets to average interest bearing liabilities | | | | | | | | | | | | | | | | | 115.06% | | | | | | | | | | | | | | | | | | 115.29% | | |
|
| | | Year Ended December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Average Balance | | | Interest | | | Average Rate | | | Average Balance | | | Interest | | | Average Rate | | | Average Balance | | | Interest | | | Average Rate | | |||||||||||||||||||||||||||
| | | (dollars in thousands) | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities(1)(2) | | | | $ | 13,512 | | | | | $ | 459 | | | | | | 3.40% | | | | | $ | 14,194 | | | | | $ | 421 | | | | | | 2.97% | | | | | $ | 17,343 | | | | | $ | 448 | | | | | | 2.59% | | |
Loans(3) | | | | | 409,381 | | | | | | 22,051 | | | | | | 5.39% | | | | | | 392,145 | | | | | | 20,264 | | | | | | 5.17% | | | | | | 345,140 | | | | | | 17,100 | | | | | | 4.95% | | |
Interest bearing deposits with banks and | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | |
Federal funds sold | | | | | 30,925 | | | | | | 766 | | | | | | 2.48% | | | | | | 20,780 | | | | | | 498 | | | | | | 2.40% | | | | | | 6,202 | | | | | | 132 | | | | | | 2.13% | | |
Interest-bearing time deposits | | | | | 9,712 | | | | | | 232 | | | | | | 2.39% | | | | | | 20,467 | | | | | | 389 | | | | | | 1.90% | | | | | | 11,084 | | | | | | 136 | | | | | | 1.23% | | |
Restricted investment in bank stocks | | | | | 2,944 | | | | | | 249 | | | | | | 8.46% | | | | | | 2,941 | | | | | | 216 | | | | | | 7.34% | | | | | | 2,232 | | | | | | 128 | | | | | | 5.73% | | |
Total interest earning assets(2) | | | | | 466,474 | | | | | | 23,757 | | | | | | 5.09% | | | | | | 450,527 | | | | | | 21,788 | | | | | | 4.84% | | | | | | 382,001 | | | | | | 17,944 | | | | | | 4.70% | | |
Allowance for loan losses | | | | | (4,607) | | | | | | | | | | | | | | | | | | (5,288) | | | | | | | | | | | | | | | | | | (6,858) | | | | | | | | | | | | | | |
Non-interest earning assets | | | | | 31,887 | | | | | | | | | | | | | | | | | | 30,284 | | | | | | | | | | | | | | | | | | 27,802 | | | | | | | | | | | | | | |
Total assets | | | | $ | 493,754 | | | | | | | | | | | | | | | | | $ | 475,523 | | | | | | | | | | | | | | | | | $ | 402,945 | | | | | | | | | | | | | | |
Interest bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing demand deposits | | | | $ | 55,505 | | | | | | 176 | | | | | | 0.32% | | | | | $ | 53,074 | | | | | $ | 158 | | | | | | 0.30% | | | | | $ | 48,365 | | | | | $ | 138 | | | | | | 0.29% | | |
Money market deposits | | | | | 124,668 | | | | | | 2,269 | | | | | | 1.82% | | | | | | 119,161 | | | | | | 1,799 | | | | | | 1.51% | | | | | | 123,215 | | | | | | 1,122 | | | | | | 0.91% | | |
Savings deposits | | | | | 5,120 | | | | | | 13 | | | | | | 0.25% | | | | | | 3,299 | | | | | | 8 | | | | | | 0.24% | | | | | | 3,454 | | | | | | 9 | | | | | | 0.26% | | |
Time deposits | | | | | 117,415 | | | | | | 2,673 | | | | | | 2.28% | | | | | | 117,123 | | | | | | 2,240 | | | | | | 1.91% | | | | | | 81,853 | | | | | | 1,165 | | | | | | 1.42% | | |
Total interest bearing deposits | | | | | 302,708 | | | | | | 5,131 | | | | | | 1.70% | | | | | | 292,657 | | | | | | 4,205 | | | | | | 1.44% | | | | | | 256,887 | | | | | | 2,434 | | | | | | 0.95% | | |
Borrowings and debt | | | | | 65,099 | | | | | | 1,465 | | | | | | 2.25% | | | | | | 64,829 | | | | | | 1,411 | | | | | | 2.18% | | | | | | 46,843 | | | | | | 867 | | | | | | 1.85% | | |
Subordinated debentures | | | | | 10,000 | | | | | | 630 | | | | | | 6.30% | | | | | | 10,000 | | | | | | 630 | | | | | | 6.30% | | | | | | 9,025 | | | | | | 566 | | | | | | 6.27% | | |
Total interest bearing liabilities | | | | | 377,807 | | | | | | 7,226 | | | | | | 1.91% | | | | | | 367,486 | | | | | | 6,246 | | | | | | 1.70% | | | | | | 312,755 | | | | | | 3,867 | | | | | | 1.24% | | |
Non-interest bearing deposits | | | | | 70,292 | | | | | | | | | | | | | | | | | | 69,424 | | | | | | | | | | | | | | | | | | 62,739 | | | | | | | | | | | | | | |
Other liabilities | | | | | 5,388 | | | | | | | | | | | | | | | | | | 3,151 | | | | | | | | | | | | | | | | | | 2,602 | | | | | | | | | | | | | | |
Stockholders’ equity | | | | | 40,267 | | | | | | | | | | | | | | | | | | 35,462 | | | | | | | | | | | | | | | | | | 24,849 | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | | | $ | 493,754 | | | | | | | | | | | | | | | | | $ | 475,523 | | | | | | | | | | | | | | | | | $ | 402,945 | | | | | | | | | | | | | | |
Net interest income/interest rate spread(2) | | | | | | | | | | | 16,531 | | | | | | 3.18% | | | | | | | | | | | | 15,542 | | | | | | 3.14% | | | | | | | | | | | | 14,077 | | | | | | 3.46% | | |
Net interest margin(2)(4) | | | | | | | | | | | | | | | | | 3.54% | | | | | | | | | | | | | | | | | | 3.45% | | | | | | | | | | | | | | | | | | 3.69% | | |
Tax-equivalent adjustment(2) | | | | | | | | | | | (25) | | | | | | | | | | | | | | | | | | (23) | | | | | | | | | | | | | | | | | | (47) | | | | | | | | |
Net interest income | | | | | | | | | | $ | 16,506 | | | | | | | | | | | | | | | | | $ | 15,519 | | | | | | | | | | | | | | | | | $ | 14,030 | | | | | | | | |
|
| | | Year Ended December 31, 2019 Compared to 2018 Increase (Decrease) Due to Change in(1) | | | Year Ended December 31, 2018 Compared to 2017 Increase (Decrease) Due to Change inf(1) | | ||||||||||||||||||||||||||||||
| | | Average Volume | | | Average Rate | | | Net Change | | | Average Volume | | | Average Rate | | | Net Change | | ||||||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||||||||
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities(2) | | | | $ | (21) | | | | | $ | 59 | | | | | $ | 38 | | | | | $ | (88) | | | | | $ | 61 | | | | | $ | (27) | | |
Loans | | | | | 910 | | | | | | 877 | | | | | | 1,787 | | | | | | 2,405 | | | | | | 759 | | | | | | 3,164 | | |
Interest bearing deposits with banks and Federal funds sold | | | | | 251 | | | | | | 17 | | | | | | 268 | | | | | | 347 | | | | | | 19 | | | | | | 366 | | |
Interest-bearing time deposits | | | | | (240) | | | | | | 83 | | | | | | (157) | | | | | | 153 | | | | | | 100 | | | | | | 253 | | |
Restricted investment in bank stocks | | | | | 0 | | | | | | 33 | | | | | | 33 | | | | | | 47 | | | | | | 41 | | | | | | 88 | | |
Total interest income(2) | | | | | 900 | | | | | | 1,069 | | | | | | 1,969 | | | | | | 2,864 | | | | | | 979 | | | | | | 3,844 | | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing demand deposits | | | | | 7 | | | | | | 11 | | | | | | 18 | | | | | | 14 | | | | | | 6 | | | | | | 20 | | |
Money market deposits | | | | | 86 | | | | | | 384 | | | | | | 470 | | | | | | (38) | | | | | | 715 | | | | | | 677 | | |
Savings deposits | | | | | 5 | | | | | | 0 | | | | | | 5 | | | | | | (0) | | | | | | (1) | | | | | | (1) | | |
Time deposits | | | | | 6 | | | | | | 427 | | | | | | 433 | | | | | | 598 | | | | | | 477 | | | | | | 1,075 | | |
Total interest bearing deposits | | | | | 104 | | | | | | 822 | | | | | | 926 | | | | | | 573 | | | | | | 1,198 | | | | | | 1,771 | | |
Borrowings and debt | | | | | 6 | | | | | | 48 | | | | | | 54 | | | | | | 373 | | | | | | 171 | | | | | | 544 | | |
Subordinated debentures | | | | | — | | | | | | — | | | | | | — | | | | | | 61 | | | | | | 3 | | | | | | 64 | | |
Total interest expense | | | | | 110 | | | | | | 870 | | | | | | 980 | | | | | | 1,008 | | | | | | 1,371 | | | | | | 2,379 | | |
Net interest income(2) | | | | $ | 790 | | | | | $ | 199 | | | | | $ | 989 | | | | | $ | 1,857 | | | | | $ | (392) | | | | | $ | 1,465 | | |
| | | Year ended December 31, | | |||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||
| | | (Dollars in thousands) | | |||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Non-interest expense | | | | $ | 12,271 | | | | | $ | 10,523 | | | | | $ | 10,967 | | |
Less: merger related expenses | | | | | 380 | | | | | | — | | | | | | | | |
| | | | $ | 11,891 | | | | | $ | 10,523 | | | | | $ | 10,967 | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | $ | 16,506 | | | | | $ | 15,519 | | | | | $ | 14,030 | | |
Non-interest income | | | | | 649 | | | | | | 653 | | | | | | 720 | | |
| | | | $ | 17,155 | | | | | $ | 16,172 | | | | | $ | 14,750 | | |
Efficiency ratios: | | | | | | | | | | | | | | | | | | | |
Including merger related expenses | | | | | 71.53% | | | | | | 65.07% | | | | | | 74.35% | | |
Excluding merger related expenses | | | | | 69.32% | | | | | | 65.07% | | | | | | 74.35% | | |
| | | Net Interest Income | | |||||||||||||||||||||
| | | December 31, 2019 | | | December 31, 2018 | | ||||||||||||||||||
| | | Amount | | | % Change | | | Amount | | | % Change | | ||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||
Rate Shock(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
+300 | | | | $ | 16,199 | | | | | | 0.5% | | | | | $ | 16,828 | | | | | | 5.4% | | |
+200 | | | | | 16,191 | | | | | | 0.5% | | | | | | 16,544 | | | | | | 3.6% | | |
+100 | | | | | 16,178 | | | | | | 0.4% | | | | | | 16,257 | | | | | | 1.8% | | |
+ 0 (Static) | | | | | 16,118 | | | | | | — | | | | | | 15,968 | | | | | | — | | |
−100 | | | | | 16,038 | | | | | | (0.5)% | | | | | | 15,779 | | | | | | (1.2)% | | |
−200 | | | | | 15,806 | | | | | | (1.9)% | | | | | | 15,750 | | | | | | (1.4)% | | |
| | | Economic Value of Equity | | |||||||||||||||||||||
| | | December 31, 2019 | | | December 31, 2018 | | ||||||||||||||||||
| | | Amount | | | % Change | | | Amount | | | % Change | | ||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||
Rate Shock(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
+300 | | | | $ | 49,944 | | | | | | (20.2)% | | | | | $ | 53,354 | | | | | | (6.6)% | | |
+200 | | | | | 55,078 | | | | | | (11.9)% | | | | | | 55,153 | | | | | | (3.4)% | | |
+100 | | | | | 59,442 | | | | | | (5.0)% | | | | | | 56,408 | | | | | | (1.2)% | | |
+ 0 (Static) | | | | | 62,550 | | | | | | — | | | | | | 57,110 | | | | | | — | | |
−100 | | | | | 62,992 | | | | | | 0.7% | | | | | | 57,034 | | | | | | (0.1)% | | |
−200 | | | | | 57,173 | | | | | | (8.6)% | | | | | | 53,228 | | | | | | (6.8)% | | |
| | | Actual | | | Minimum For Capital Adequacy Purposes | | | Minimum To Be Well Capitalized under Prompt Corrective Action Provisions | | |||||||||||||||||||||||||||
| | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
| | | (Dollars in thousands) | | |||||||||||||||||||||||||||||||||
December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common equity Tier 1 capital (to risk-weighted assets) | | | | $ | 53,099 | | | | | | 12.50% | | | | | $ | 19,122 | | | | | | 4.50% | | | | | $ | 27,620 | | | | | | 6.50% | | |
Total capital (to risk-weighted assets) | | | | | 57,128 | | | | | | 13.44% | | | | | | 33,994 | | | | | | 8.00% | | | | | | 42,493 | | | | | | 10.00% | | |
Tier 1 capital (to risk-weighted assets) | | | | | 53,099 | | | | | | 12.50% | | | | | | 25,496 | | | | | | 6.00% | | | | | | 33,994 | | | | | | 8.00% | | |
Tier 1capital (to average assets) | | | | | 53,099 | | | | | | 10.33% | | | | | | 20,569 | | | | | | 4.00% | | | | | | 25,712 | | | | | | 5.00% | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common equity Tier 1 capital (to risk-weighted assets) | | | | $ | 48,231 | | | | | | 11.95% | | | | | $ | 18,163 | | | | | | 4.50% | | | | | $ | 26,236 | | | | | | 6.50% | | |
Total capital (to risk-weighted assets) | | | | | 52,866 | | | | | | 13.10% | | | | | | 32,290 | | | | | | 8.00% | | | | | | 40,363 | | | | | | 10.00% | | |
Tier 1 capital (to risk-weighted assets) | | | | | 48,231 | | | | | | 11.95% | | | | | | 24,218 | | | | | | 6.00% | | | | | | 32,290 | | | | | | 8.00% | | |
Tier 1capital (to average assets) | | | | | 48,231 | | | | | | 10.06% | | | | | | 19,169 | | | | | | 4.00% | | | | | | 23,962 | | | | | | 5.00% | | |
| | | September 30, 2018 | | | December 31, 2017 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 1,659,370 | | | | | $ | 1,685,950 | | |
Interest-bearing deposits with other banks | | | | | 219,231 | | | | | | 198,465 | | |
Federal funds sold | | | | | 741,425 | | | | | | 529,000 | | |
Cash and cash equivalents | | | | | 2,620,026 | | | | | | 2,413,415 | | |
Investment securities available for sale; at fair value | | | | | 96,327,412 | | | | | | 71,559,989 | | |
Investment securities held to maturity | | | | | 1,250,000 | | | | | | 1,250,000 | | |
Loans receivable (net of allowance for loan losses of $2,735,000 and $2,590,000) | | | | | 250,325,066 | | | | | | 238,928,875 | | |
Accrued interest receivable | | | | | 1,445,828 | | | | | | 1,479,378 | | |
Premises and equipment | | | | | 2,453,310 | | | | | | 2,521,053 | | |
Regulatory stock | | | | | 4,443,650 | | | | | | 5,105,300 | | |
Other real estate owned | | | | | 1,614,475 | | | | | | 2,145,445 | | |
Other assets | | | | | 787,205 | | | | | | 499,450 | | |
TOTAL ASSETS | | | | $ | 361,266,972 | | | | | $ | 325,902,905 | | |
LIABILITIES | | | | | | | | | | | | | |
Deposits | | | | $ | 255,389,024 | | | | | $ | 208,893,289 | | |
Short-term borrowings | | | | | 22,000,000 | | | | | | 13,500,000 | | |
Other borrowings | | | | | 44,308,300 | | | | | | 66,992,159 | | |
Subordinated debt | | | | | 12,238,541 | | | | | | 12,211,648 | | |
Accrued interest payable | | | | | 563,036 | | | | | | 430,808 | | |
Other liabilities | | | | | 633,825 | | | | | | 368,137 | | |
TOTAL LIABILITIES | | | | | 335,132,726 | | | | | | 302,396,041 | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Common stock, $1.00 par value; 10,000,000 shares authorized; 1,577,553 and 1,392,804 issued at September 30, 2018 and December 31, 2017 | | | | | 1,577,553 | | | | | | 1,392,804 | | |
Additional paid-in capital | | | | | 14,251,150 | | | | | | 12,937,350 | | |
Retained earnings | | | | | 10,452,993 | | | | | | 8,616,189 | | |
Treasury stock at cost, 12,954 shares | | | | | (227,990) | | | | | | (227,990) | | |
Accumulated other comprehensive income | | | | | 80,540 | | | | | | 788,511 | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 26,134,246 | | | | | | 23,506,864 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 361,266,972 | | | | | $ | 325,902,905 | | |
|
| | | Nine Months Ended September 30, | | |||||||||
| | | 2018 | | | 2017 | | ||||||
INTEREST AND DIVIDEND INCOME | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 8,789,254 | | | | | $ | 7,684,394 | | |
Investment securities | | | | | 1,777,684 | | | | | | 1,335,654 | | |
Other interest and dividend income | | | | | 291,693 | | | | | | 202,675 | | |
Total interest and dividend income | | | | | 10,858,631 | | | | | | 9,222,723 | | |
INTEREST EXPENSE | | | | | | | | | | | | | |
Deposits | | | | | 2,291,004 | | | | | | 1,479,037 | | |
Borrowings | | | | | 1,429,905 | | | | | | 1,218,833 | | |
Total interest expense | | | | | 3,720,909 | | | | | | 2,697,870 | | |
NET INTEREST INCOME | | | | | 7,137,722 | | | | | | 6,524,853 | | |
Provision for loan losses | | | | | 395,000 | | | | | | 200,000 | | |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | | | | | 6,742,722 | | | | | | 6,324,853 | | |
NONINTEREST INCOME | | | | | | | | | | | | | |
Service fees on deposit accounts | | | | | 16,035 | | | | | | 17,711 | | |
Investment securities gains, net | | | | | 729,821 | | | | | | 11,162 | | |
Gain on sale of loans, net | | | | | 9,512 | | | | | | 50,770 | | |
Other | | | | | 73,699 | | | | | | 42,414 | | |
Total noninterest income | | | | | 829,067 | | | | | | 122,057 | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | |
Compensation and employee benefits | | | | | 2,788,558 | | | | | | 2,762,855 | | |
Occupancy and equipment | | | | | 283,941 | | | | | | 312,301 | | |
Advertising | | | | | 119,997 | | | | | | 105,000 | | |
Professional fees | | | | | 218,364 | | | | | | 205,596 | | |
Federal deposit insurance expense | | | | | 77,841 | | | | | | 93,976 | | |
Data processing | | | | | 440,181 | | | | | | 388,043 | | |
Pennsylvania shares tax expense | | | | | 144,286 | | | | | | 143,287 | | |
Loss on other real estate owned | | | | | 548,929 | | | | | | — | | |
Other | | | | | 733,089 | | | | | | 516,340 | | |
Total noninterest expense | | | | | 5,355,186 | | | | | | 4,527,398 | | |
Income before income taxes | | | | | 2,216,603 | | | | | | 1,919,512 | | |
Income taxes | | | | | 379,799 | | | | | | 458,487 | | |
NET INCOME | | | | | 1,836,804 | | | | | | 1,461,025 | | |
Dividend on preferred stock | | | | | — | | | | | | 85,388 | | |
Income available to common stockholders | | | | $ | 1,836,804 | | | | | $ | 1,375,637 | | |
EARNINGS PER SHARE: | | | | | | | | | | | | | |
Basic | | | | $ | 1.20 | | | | | $ | 1.02 | | |
Diluted | | | | | 1.18 | | | | | | 0.93 | | |
WEIGHTED-AVERAGE SHARES OUTSTANDING: | | | | | | | | | | | | | |
Basic | | | | | 1,530,616 | | | | | | 1,342,619 | | |
Diluted | | | | | 1,554,970 | | | | | | 1,479,012 | | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2018 | | | 2017 | | ||||||
Net income | | | | $ | 1,836,804 | | | | | $ | 1,461,025 | | |
Net unrealized gain (loss) on investment securities available for sale | | | | | (169,466) | | | | | | 779,276 | | |
Tax effect | | | | | 38,054 | | | | | | (264,955) | | |
Reclassification adjustment for gains recognized in net income | | | | | (729,821) | | | | | | (11,162) | | |
Tax effect | | | | | 153,262 | | | | | | 3,795 | | |
Other comprehensive income (loss), net of tax | | | | | (707,971) | | | | | | 506,954 | | |
Total comprehensive income | | | | $ | 1,128,833 | | | | | $ | 1,967,979 | | |
|
| | | Common Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Treasury Stock | | | Accumulated Other Comprehensive Income | | | Total Stockholders’ Equity | | ||||||||||||||||||
Balance, December 31, 2017 | | | | $ | 1,392,804 | | | | | $ | 12,937,350 | | | | | $ | 8,616,189 | | | | | $ | (227,990) | | | | | $ | 788,511 | | | | | $ | 23,506,864 | | |
Net income | | | | | — | | | | | | — | | | | | | 1,836,804 | | | | | | — | | | | | | — | | | | | | 1,836,804 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (707,971) | | | | | | (707,971) | | |
Issuance of common stock (5 shares) | | | | | 5 | | | | | | 83 | | | | | | — | | | | | | — | | | | | | — | | | | | | 88 | | |
Stock-based compensation | | | | | — | | | | | | 16,488 | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,488 | | |
Stock options exercised (23,213 shares) | | | | | 23,213 | | | | | | (150,710) | | | | | | — | | | | | | — | | | | | | — | | | | | | (127,497) | | |
Vesting of restricted stock (584 shares) | | | | | 584 | | | | | | (584) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Exercise of warrants (160,947 shares) | | | | | 160,947 | | | | | | 1,448,523 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,609,470 | | |
Balance, September 30, 2018 | | | | $ | 1,577,553 | | | | | $ | 14,251,150 | | | | | $ | 10,452,993 | | | | | $ | (227,990) | | | | | $ | 80,540 | | | | | $ | 26,134,246 | | |
|
| | | Nine Months Ended September 30, | | |||||||||
| | | 2018 | | | 2017 | | ||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net income | | | | $ | 1,836,804 | | | | | $ | 1,461,025 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Provision for loan losses | | | | | 395,000 | | | | | | 200,000 | | |
Depreciation, amortization, and accretion, net | | | | | 221,888 | | | | | | 478,995 | | |
Gains on sale of investment securities, net | | | | | (729,821) | | | | | | (11,162) | | |
Proceeds from sale of loans | | | | | 492,012 | | | | | | 3,065,656 | | |
Net gain on sale of loans | | | | | (9,512) | | | | | | (50,770) | | |
Loans originated for sale | | | | | (482,500) | | | | | | (2,914,900) | | |
Stock-based compensation expense | | | | | 16,488 | | | | | | 13,294 | | |
Deferred income taxes | | | | | (19,214) | | | | | | 137,951 | | |
Decrease (increase) in accrued interest receivable | | | | | 33,550 | | | | | | (159,789) | | |
Increase in accrued interest payable | | | | | 132,228 | | | | | | 269,758 | | |
Loss on other real estate owned | | | | | 548,929 | | | | | | — | | |
Other, net | | | | | 185,342 | | | | | | (403,042) | | |
Net cash provided by operating activities | | | | | 2,621,194 | | | | | | 2,087,016 | | |
INVESTING ACTIVITIES | | | | | | | | | | | | | |
Investment securities held to maturity: | | | | | | | | | | | | | |
Purchases | | | | | — | | | | | | (250,000) | | |
Investment securities available for sale: | | | | | | | | | | | | | |
Purchases | | | | | (58,058,005) | | | | | | (12,652,392) | | |
Proceeds from principal repayments and maturities | | | | | 5,201,095 | | | | | | 3,309,845 | | |
Proceeds from sales | | | | | 27,817,892 | | | | | | 1,817,466 | | |
Net increase in loans receivable | | | | | (11,764,999) | | | | | | (21,314,712) | | |
Purchase of premises and equipment | | | | | (48,194) | | | | | | (21,939) | | |
Capitalized improvements to real estate owned | | | | | (17,959) | | | | | | — | | |
Redemption of regulatory stock | | | | | 2,312,100 | | | | | | 697,200 | | |
Purchase of regulatory stock | | | | | (1,650,450) | | | | | | (1,667,500) | | |
Net cash used for investing activities | | | | | (36,208,520) | | | | | | (30,082,032) | | |
FINANCING ACTIVITIES | | | | | | | | | | | | | |
Net increase in deposits | | | | | 46,495,735 | | | | | | 10,632,830 | | |
Net increase in short-term borrowings | | | | | 8,500,000 | | | | | | 3,000,000 | | |
Proceeds from other borrowed funds | | | | | 5,071,000 | | | | | | 22,974,750 | | |
Repayments on other borrowed funds | | | | | (27,754,859) | | | | | | (11,733,500) | | |
Proceeds from issuance of common stock | | | | | 88 | | | | | | — | | |
Dividends paid on preferred stock | | | | | — | | | | | | (85,388) | | |
Proceeds from the exercise share based awards | | | | | 1,481,973 | | | | | | — | | |
Proceeds from redemption of preferred stock | | | | | — | | | | | | (2,970,000) | | |
Proceeds from issuance of subordinated debt | | | | | — | | | | | | 7,000,000 | | |
Net cash provided by financing activities | | | | | 33,793,937 | | | | | | 28,818,692 | | |
Change in cash and cash equivalents | | | | | 206,611 | | | | | | 823,676 | | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | | | 2,413,415 | | | | | | 2,629,461 | | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | | | | $ | 2,620,026 | | | | | $ | 3,453,137 | | |
SUPPLEMENTAL CASH FLOW DISCLOSURE | | | | | | | | | | | | | |
Cash paid: | | | | | | | | | | | | | |
Interest | | | | $ | 3,588,681 | | | | | $ | 2,428,112 | | |
Income taxes | | | | | 502,134 | | | | | | 601,500 | | |
Noncash items: | | | | | | | | | | | | | |
Loans transferred to other real estate owned | | | | | — | | | | | | 827,789 | | |
| | | 2018 | | | 2017 | | ||||||
Weighted-average common shares outstanding (basic) | | | | | 1,530,616 | | | | | | 1,342,619 | | |
Additional common stock equivalents (stock options) used to calculate diluted earnings per share | | | | | 24,354 | | | | | | 42,041 | | |
Additional common stock equivalents (warrants) used to calculate diluted earnings per share | | | | | — | | | | | | 94,352 | | |
Weighted-average common shares outstanding (diluted) | | | | | 1,554,970 | | | | | | 1,479,012 | | |
|
| | | September 30, 2018 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Obligations of states and political subdivisions | | | | $ | 1,808,048 | | | | | $ | 59,221 | | | | | $ | — | | | | | $ | 1,867,269 | | |
Corporate securities | | | | | 34,075,813 | | | | | | 262,624 | | | | | | (53,754) | | | | | | 34,284,683 | | |
Mortgage-backed securities – government-sponsored entities | | | | | 4,653,729 | | | | | | 29,810 | | | | | | (13,235) | | | | | | 4,670,304 | | |
Asset-backed securities | | | | | 55,687,873 | | | | | | 59,546 | | | | | | (242,263) | | | | | | 55,505,156 | | |
Total | | | | $ | 96,225,463 | | | | | $ | 411,201 | | | | | $ | (309,252) | | | | | $ | 96,327,412 | | |
|
| | | December 31, 2017 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Obligations of states and political subdivisions | | | | $ | 32,206,082 | | | | | $ | 787,111 | | | | | $ | (26,407) | | | | | $ | 32,966,786 | | |
Corporate securities | | | | | 23,999,432 | | | | | | 337,987 | | | | | | (15,136) | | | | | | 24,322,283 | | |
Mortgage-backed securities – government-sponsored entities | | | | | 5,936,867 | | | | | | 40,919 | | | | | | (4,813) | | | | | | 5,972,973 | | |
Asset-backed securities | | | | | 8,416,372 | | | | | | 18,835 | | | | | | (137,260) | | | | | | 8,297,947 | | |
Total | | | | $ | 70,558,753 | | | | | $ | 1,184,852 | | | | | $ | (183,616) | | | | | $ | 71,559,989 | | |
|
| | | September 30, 2018 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Corporate securities | | | | $ | 1,250,000 | | | | | $ | — | | | | | $ | (19,210) | | | | | $ | 1,230,790 | | |
Total | | | | $ | 1,250,000 | | | | | $ | — | | | | | $ | (19,210) | | | | | $ | 1,230,790 | | |
|
| | | December 31, 2017 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Corporate securities | | | | $ | 1,250,000 | | | | | $ | — | | | | | $ | (3,120) | | | | | $ | 1,246,880 | | |
Total | | | | $ | 1,250,000 | | | | | $ | — | | | | | $ | (3,120) | | | | | $ | 1,246,880 | | |
|
| | | September 30, 2018 | | |||||||||||||||||||||||||||||||||
| | | Less than Twelve Months | | | Twelve Months or Greater | | | Total | | |||||||||||||||||||||||||||
| | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | ||||||||||||||||||
Corporate securities | | | | $ | — | | | | | $ | — | | | | | $ | 12,325,303 | | | | | $ | (72,964) | | | | | $ | 12,325,303 | | | | | $ | (72,964) | | |
Mortgage-backed securities – government-sponsored entities | | | | | 1,047,546 | | | | | | (8,977) | | | | | | 522,352 | | | | | | (4,258) | | | | | | 1,569,898 | | | | | | (13,235) | | |
Asset-backed securities | | | | | 6,127,051 | | | | | | (115,519) | | | | | | 29,514,537 | | | | | | (126,744) | | | | | | 35,641,588 | | | | | | (242,263) | | |
Total | | | | $ | 7,174,597 | | | | | $ | (124,496) | | | | | $ | 42,362,192 | | | | | $ | (203,966) | | | | | $ | 49,536,789 | | | | | $ | (328,462) | | |
|
| | | December 31, 2017 | | |||||||||||||||||||||||||||||||||
| | | Less than Twelve Months | | | Twelve Months or Greater | | | Total | | |||||||||||||||||||||||||||
| | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | ||||||||||||||||||
Obligations of states and political subdivisions | | | | $ | 2,193,182 | | | | | $ | (26,407) | | | | | $ | — | | | | | $ | — | | | | | $ | 2,193,182 | | | | | $ | (26,407) | | |
Corporate securities | | | | | 996,880 | | | | | | (3,120) | | | | | | 3,143,526 | | | | | | (15,136) | | | | | | 4,140,406 | | | | | | (18,256) | | |
Mortgage-backed securities – government-sponsored entities | | | | | 1,304,971 | | | | | | (4,813) | | | | | | — | | | | | | — | | | | | | 1,304,971 | | | | | | (4,813) | | |
Asset-backed securities | | | | | — | | | | | | — | | | | | | 7,365,808 | | | | | | (137,260) | | | | | | 7,365,808 | | | | | | (137,260) | | |
Total | | | | $ | 4,495,033 | | | | | $ | (34,340) | | | | | $ | 10,509,334 | | | | | $ | (152,396) | | | | | $ | 15,004,367 | | | | | $ | (186,736) | | |
|
| | | Available for Sale | | | Held to Maturity | | ||||||||||||||||||
| | | Amortized Cost | | | Fair Value | | | Amortized Cost | | | Fair Value | | ||||||||||||
Due within one year | | | | $ | 505,485 | | | | | $ | 506,905 | | | | | $ | — | | | | | $ | — | | |
Due after one year through five years | | | | | 15,741,448 | | | | | | 15,802,245 | | | | | | — | | | | | | — | | |
Due after five years through ten years | | | | | 21,999,093 | | | | | | 22,122,524 | | | | | | 1,250,000 | | | | | | 1,230,790 | | |
Due after ten years | | | | | 57,979,437 | | | | | | 57,895,738 | | | | | | — | | | | | | — | | |
Total | | | | $ | 96,225,463 | | | | | $ | 96,327,412 | | | | | $ | 1,250,000 | | | | | $ | 1,230,790 | | |
|
| | | 2018 | | | 2017 | | ||||||
Proceeds from sales | | | | $ | 27,817,892 | | | | | $ | 1,817,466 | | |
Gross gains | | | | | 748,285 | | | | | | 11,162 | | |
Gross losses | | | | | 18,464 | | | | | | — | | |
| | | September 30, 2018 | | | December 31, 2017 | | ||||||
Real estate loans: | | | | | | | | | | | | | |
Construction | | | | $ | 3,216,172 | | | | | $ | 2,661,651 | | |
Residential | | | | | 109,884,940 | | | | | | 100,653,217 | | |
Commercial | | | | | 134,646,543 | | | | | | 133,939,605 | | |
Commercial | | | | | 4,311,092 | | | | | | 3,464,248 | | |
Consumer | | | | | 1,001,319 | | | | | | 1,004,463 | | |
| | | | | 253,060,066 | | | | | | 241,723,184 | | |
Less: | | | | | | | | | | | | | |
Deferred loan costs | | | | | — | | | | | | 204,309 | | |
Allowance for loan losses | | | | | 2,735,000 | | | | | | 2,590,000 | | |
Total | | | | $ | 250,325,066 | | | | | $ | 238,928,875 | | |
|
| | | Construction Real Estate | | | Residential Real Estate | | | Commercial Real Estate | | | Commercial | | | Consumer | | | Unallocated | | | Total | | |||||||||||||||||||||
Balance, December 31, 2016 | | | | $ | 53,000 | | | | | $ | 908,000 | | | | | $ | 1,311,000 | | | | | $ | 9,000 | | | | | $ | 10,000 | | | | | $ | 9,000 | | | | | $ | 2,300,000 | | |
Add provisions (credit) charged to operations | | | | | (13,000) | | | | | | 119,000 | | | | | | 86,000 | | | | | | 8,000 | | | | | | (2,000) | | | | | | 2,000 | | | | | | 200,000 | | |
Add recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Less loans charged off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, September 30, 2017 | | | | $ | 40,000 | | | | | $ | 1,027,000 | | | | | $ | 1,397,000 | | | | | $ | 17,000 | | | | | $ | 8,000 | | | | | $ | 11,000 | | | | | $ | 2,500,000 | | |
Balance, December 31, 2017 | | | | | 30,000 | | | | | | 1,080,000 | | | | | | 1,427,000 | | | | | | 35,000 | | | | | | 10,000 | | | | | | 8,000 | | | | | | 2,590,000 | | |
Add provisions (credit) charged to operations | | | | | 9,000 | | | | | | 362,000 | | | | | | 5,000 | | | | | | 22,000 | | | | | | 1,000 | | | | | | (4,000) | | | | | | 395,000 | | |
Add recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Less loans charged off | | | | | — | | | | | | (250,000) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (250,000) | | |
Balance, September 30, 2018 | | | | $ | 39,000 | | | | | $ | 1,192,000 | | | | | $ | 1,432,000 | | | | | $ | 57,000 | | | | | $ | 11,000 | | | | | $ | 4,000 | | | | | $ | 2,735,000 | | |
|
| | | September 30, 2018 | | |||||||||||||||||||||||||||||||||||||||
| | | Construction Real Estate | | | Residential Real Estate | | | Commercial Real Estate | | | Commercial | | | Consumer | | | Unallocated | | | Total | | |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 39,000 | | | | | | 1,192,000 | | | | | | 1,432,000 | | | | | | 57,000 | | | | | | 11,000 | | | | | | 4,000 | | | | | | 2,735,000 | | |
Total | | | | $ | 39,000 | | | | | $ | 1,192,000 | | | | | $ | 1,432,000 | | | | | $ | 57,000 | | | | | $ | 11,000 | | | | | $ | 4,000 | | | | | $ | 2,735,000 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | 761,954 | | | | | $ | 846,457 | | | | | $ | 24,494 | | | | | $ | — | | | | | | | | | | | $ | 1,632,905 | | |
Collectively evaluated for impairment | | | | | 3,216,172 | | | | | | 109,122,986 | | | | | | 133,800,086 | | | | | | 4,286,598 | | | | | | 1,001,319 | | | | | | — | | | | | | 251,427,161 | | |
Total | | | | $ | 3,216,172 | | | | | $ | 109,884,940 | | | | | $ | 134,646,543 | | | | | $ | 4,311,092 | | | | | $ | 1,001,319 | | | | | | | | | | | $ | 253,060,066 | | |
|
| | | December 31, 2017 | | |||||||||||||||||||||||||||||||||||||||
| | | Construction Real Estate | | | Residential Real Estate | | | Commercial Real Estate | | | Commercial | | | Consumer | | | Unallocated | | | Total | | |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 30,000 | | | | | | 1,080,000 | | | | | | 1,427,000 | | | | | | 35,000 | | | | | | 10,000 | | | | | | 8,000 | | | | | | 2,590,000 | | |
Total | | | | $ | 30,000 | | | | | $ | 1,080,000 | | | | | $ | 1,427,000 | | | | | $ | 35,000 | | | | | $ | 10,000 | | | | | $ | 8,000 | | | | | $ | 2,590,000 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | 1,026,328 | | | | | $ | 2,342,847 | | | | | $ | 9,494 | | | | | $ | — | | | | | | | | | | | $ | 3,378,669 | | |
Collectively evaluated for impairment | | | | | 2,661,651 | | | | | | 99,626,889 | | | | | | 131,596,758 | | | | | | 3,454,754 | | | | | | 1,004,463 | | | | | | — | | | | | | 238,344,515 | | |
Total | | | | $ | 2,661,651 | | | | | $ | 100,653,217 | | | | | $ | 133,939,605 | | | | | $ | 3,464,248 | | | | | $ | 1,004,463 | | | | | | | | | | | $ | 241,723,184 | | |
|
| | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
September 30, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 133,668,535 | | | | | $ | — | | | | | $ | 493,104 | | | | | $ | 484,904 | | | | | $ | 134,646,543 | | |
Commercial | | | | | 4,286,598 | | | | | | — | | | | | | 24,494 | | | | | | — | | | | | | 4,311,092 | | |
Total | | | | $ | 137,955,133 | | | | | $ | — | | | | | $ | 517,598 | | | | | $ | 484,904 | | | | | $ | 138,957,635 | | |
|
| | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 131,463,416 | | | | | $ | 306,481 | | | | | $ | 920,217 | | | | | $ | 1,249,491 | | | | | $ | 133,939,605 | | |
Commercial | | | | | 3,454,754 | | | | | | 9,494 | | | | | | — | | | | | | — | | | | | | 3,464,248 | | |
Total | | | | $ | 134,918,170 | | | | | $ | 315,975 | | | | | $ | 920,217 | | | | | $ | 1,249,491 | | | | | $ | 137,403,853 | | |
|
| | | Performing | | | Nonperforming | | | Total | | |||||||||
September 30, 2018 | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | |
Construction | | | | $ | 3,216,172 | | | | | $ | — | | | | �� | $ | 3,216,172 | | |
Residential | | | | | 109,680,326 | | | | | | 204,614 | | | | | | 109,884,940 | | |
Consumer | | | | | 1,001,319 | | | | | | — | | | | | | 1,001,319 | | |
Total | | | | $ | 113,897,817 | | | | | $ | 204,614 | | | | | $ | 114,102,431 | | |
|
| | | Performing | | | Nonperforming | | | Total | | |||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | |
Construction | | | | $ | 2,661,651 | | | | | $ | — | | | | | $ | 2,661,651 | | |
Residential | | | | | 100,653,217 | | | | | | — | | | | | | 100,653,217 | | |
Consumer | | | | | 1,004,463 | | | | | | — | | | | | | 1,004,463 | | |
Total | | | | $ | 104,319,331 | | | | | $ | — | | | | | $ | 104,319,331 | | |
|
| | | Current | | | 31 – 60 Days Past Due | | | 61 – 90 Days Past Due | | | Greater Than 90 Days Past Due | | | Total Loans | | | Nonaccrual | | ||||||||||||||||||
September 30, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | | $ | 3,216,172 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 3,216,172 | | | | | $ | — | | |
Residential | | | | | 109,680,326 | | | | | | — | | | | | | — | | | | | | 204,614 | | | | | | 109,884,940 | | | | | | 204,614 | | |
Commercial | | | | | 134,339,956 | | | | | | — | | | | | | — | | | | | | 306,587 | | | | | | 134,646,543 | | | | | | 484,904 | | |
Commercial | | | | | 4,311,092 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,311,092 | | | | | | — | | |
Consumer | | | | | 1,001,319 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,001,319 | | | | | | — | | |
Total | | | | $ | 252,548,866 | | | | | $ | — | | | | | $ | — | | | | | $ | 511,201 | | | | | $ | 253,060,066 | | | | | $ | 689,518 | | |
|
| | | Current | | | 31 – 60 Days Past Due | | | 61 – 90 Days Past Due | | | Greater Than 90 Days Past Due | | | Total Loans | | | Nonaccrual | | ||||||||||||||||||
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | | $ | 2,661,651 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,661,651 | | | | | $ | — | | |
Residential | | | | | 100,653,217 | | | | | | — | | | | | | — | | | | | | — | | | | | | 100,653,217 | | | | | | — | | |
Commercial | | | | | 132,690,114 | | | | | | 203,312 | | | | | | — | | | | | | 1,046,179 | | | | | | 133,939,605 | | | | | | 1,249,491 | | |
Commercial | | | | | 3,464,248 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,464,248 | | | | | | — | | |
Consumer | | | | | 1,004,463 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,004,463 | | | | | | — | | |
Total | | | | $ | 240,473,694 | | | | | $ | 203,312 | | | | | $ | — | | | | | $ | 1,046,179 | | | | | $ | 241,723,184 | | | | | $ | 1,249,491 | | |
|
| | | September 30, 2018 | | ||||||||||||||||||
| | | Recorded Investment | | | Unpaid Principal Balance | | | Related Allowance | | | |||||||||||
With no specific allowance recorded: | | | | | | | | | | | | | | | | | | | | | ||
Real estate: | | | | | | | | | | | | | | | | | | | | | ||
Residential | | | | $ | 761,954 | | | | | $ | 1,011,954 | | | | | $ | | | | |||
Commercial | | | | | 846,457 | | | | | | 1,179,017 | | | | | | — | | | | ||
Commercial | | | | | 24,494 | | | | | | 24,494 | | | | | | — | | | | ||
Subtotal | | | | | 1,632,905 | | | | | | 2,215,465 | | | | | | — | | | | ||
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | ||
Real estate: | | | | | | | | | | | | | | | | | | | | | ||
Residential | | | | | — | | | | | | — | | | | | | — | | | | ||
Commercial | | | | | — | | | | | | — | | | | | | — | | | | ||
Commercial | | | | | — | | | | | | — | | | | | | — | | | | ||
Subtotal | | | | | — | | | | | | — | | | | | | — | | | | ||
Total | | | | | | | | | | | | | | | | | | | | | ||
Real estate: | | | | | | | | | | | | | | | | | | | | | ||
Residential | | | | | 761,954 | | | | | | 1,011,954 | | | | | | | | | | ||
Commercial | | | | | 846,457 | | | | | | 1,179,017 | | | | | | — | | | | ||
Commercial | | | | | 24,494 | | | | | | 24,494 | | | | | | — | | | | ||
Total | | | | $ | 1,632,905 | | | | | $ | 2,215,465 | | | | | $ | — | | | | ||
|
| | | December 31, 2017 | | ||||||||||||||||||
| | | Recorded Investment | | | Unpaid Principal Balance | | | Related Allowance | | | |||||||||||
With no specific allowance recorded: | | | | | | | | | | | | | | | | | | | | | ||
Real estate: | | | | | | | | | | | | | | | | | | | | | ||
Residential | | | | $ | 1,026,328 | | | | | $ | 1,026,328 | | | | | $ | | | | |||
Commercial | | | | | 2,342,847 | | | | | | 3,046,352 | | | | | | — | | | | ||
Commercial | | | | | 9,494 | | | | | | 9,494 | | | | | | — | | | | ||
Subtotal | | | | | 3,378,669 | | | | | | 4,082,174 | | | | | | — | | | | ||
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | ||
Real estate: | | | | | | | | | | | | | | | | | | | | | ||
Residential | | | | | — | | | | | | — | | | | | | — | | | | ||
Commercial | | | | | — | | | | | | — | | | | | | — | | | | ||
Commercial | | | | | — | | | | | | — | | | | | | — | | | | ||
Subtotal | | | | | — | | | | | | — | | | | | | — | | | | ||
Total | | | | | | | | | | | | | | | | | | | | | ||
Real estate: | | | | | | | | | | | | | | | | | | | | | ||
Residential | | | | | 1,026,328 | | | | | | 1,026,328 | | | | | | | | | | ||
Commercial | | | | | 2,342,847 | | | | | | 3,046,352 | | | | | | — | | | | ||
Commercial | | | | | 9,494 | | | | | | 9,494 | | | | | | — | | | | ||
Total | | | | $ | 3,378,669 | | | | | $ | 4,082,174 | | | | | $ | — | | | | ||
|
| | | 2018 | | | 2017 | | | 2018 | | | 2017 | | ||||||||||||
| | | Average Recorded Investment | | | Average Recorded Investment | | | Interest Income Recognized | | | Interest Income Recognized | | ||||||||||||
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | $ | 1,017,065 | | | | | $ | 1,043,449 | | | �� | | $ | 30,623 | | | | | $ | 41,440 | | |
Commercial | | | | | 1,425,892 | | | | | | 2,849,009 | | | | | | 136,801 | | | | | | 118,947 | | |
Commercial | | | | | 22,840 | | | | | | 9,529 | | | | | | 869 | | | | | | 289 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | |
Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | $ | 1,017,065 | | | | | $ | 1,043,449 | | | | | $ | 30,623 | | | | | $ | 41,440 | | |
Commercial | | | | | 1,425,892 | | | | | | 2,849,009 | | | | | | 136,801 | | | | | | 118,947 | | |
Commercial | | | | | 22,840 | | | | | | 9,529 | | | | | | 869 | | | | | | 289 | | |
| | | September 30, 2018 | | | December 31, 2017 | | ||||||
| | | Amount | | | Amount | | ||||||
Noninterest-bearing demand | | | | $ | 24,711,049 | | | | | $ | 25,054,268 | | |
Statement savings | | | | | 11,494,622 | | | | | | 11,222,991 | | |
Interest-bearing demand | | | | | 15,103,313 | | | | | | 8,240,083 | | |
Money market deposit accounts | | | | | 57,153,481 | | | | | | 32,174,984 | | |
Time certificates of deposit | | | | $ | 146,926,559 | | | | | $ | 132,200,963 | | |
| | | | | 255,389,024 | | | | | | 208,893,289 | | |
|
| Within one year | | | | $ | 97,155,516 | | |
| Beyond one year but within two years | | | | | 37,696,977 | | |
| Beyond two years but within three years | | | | | 10,371,500 | | |
| Beyond three years but within four years | | | | | 513,984 | | |
| Beyond four years but within five years | | | | | 1,188,582 | | |
| Total | | | | $ | 146,926,559 | | |
|
| | | September 30, 2018 | | | December 31, 2017 | | ||||||
Balance at period-end | | | | $ | 22,000,000 | | | | | $ | 13,500,000 | | |
Average balance outstanding during the period | | | | | 12,814,963 | | | | | | 10,306,479 | | |
Maximum month-end balance | | | | | 22,000,000 | | | | | | 21,295,800 | | |
Weighted-average interest rate: | | | | | | | | | | | | | |
As of period-end | | | | | 2.38% | | | | | | 1.54% | | |
Paid during the period | | | | | 1.24% | | | | | | 0.70% | | |
Description | | | Maturity Range | | | Weighted- Average Rate | | | Stated Rate Interest Range | | | September 30, 2018 | | | December 31, 2017 | | |||||||||||||||||||||||||||
| From | | | To | | | From | | | To | | ||||||||||||||||||||||||||||||||
Fixed rate | | | | | 1/23/2019 | | | | | | 7/29/2019 | | | | | | 1.22% | | | | | | 1.02% | | | | | | 1.83% | | | | | $ | 5,089,000 | | | | | $ | 18,343,859 | | |
Mid term | | | | | 10/1/2018 | | | | | | 2/28/2020 | | | | | | 1.41% | | | | | | 1.05% | | | | | | 2.35% | | | | | | 39,219,300 | | | | | | 48,648,300 | | |
Total | | | | $ | 44,308,300 | | | | | $ | 66,992,159 | | | ||||||||||||||||||||||||||||||
|
Year Ending December 31, | | | September 30, 2018 | | |||||||||
| Amount | | | Weighted- Average Rate | | ||||||||
2018 | | | | $ | 10,048,800 | | | | | | 1.15% | | |
2019 | | | | | 23,462,250 | | | | | | 1.24% | | |
2020 | | | | | 10,797,250 | | | | | | 1.91% | | |
Total | | | | $ | 44,308,300 | | | | | | 1.38% | | |
|
| | | 2018 | | | 2017 | | ||||||
Current payable | | | | $ | 399,013 | | | | | $ | 320,536 | | |
Deferred taxes | | | | | (19,214) | | | | | | 137,951 | | |
Total | | | | $ | 379,799 | | | | | $ | 458,487 | | |
|
| | | 2018 | | | 2017 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Allowance for loan losses | | | | $ | 413,980 | | | | | $ | 413,980 | | |
Startup and organizational costs | | | | | 40,318 | | | | | | 47,164 | | |
Nonaccrued interest | | | | | 69,816 | | | | | | 102,718 | | |
Other | | | | | 6,591 | | | | | | 6,591 | | |
Total gross deferred tax assets | | | | | 530,705 | | | | | | 570,453 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Premises and equipment | | | | | 56,983 | | | | | | 57,705 | | |
Unrealized gain on securities | | | | | 21,409 | | | | | | 209,604 | | |
Deferred costs | | | | | 112,106 | | | | | | 108,133 | | |
Total gross deferred tax liabilities | | | | | 190,498 | | | | | | 375,442 | | |
Net deferred tax assets | | | | $ | 340,207 | | | | | $ | 195,011 | | |
|
| | | 2018 | | | 2017 | | ||||||||||||||||||
| Amount | | | % of Pretax Income | | | Amount | | | % of Pretax Income | | ||||||||||||||
Provision at statutory rate | | | | $ | 465,487 | | | | | | 21.0% | | | | | $ | 652,634 | | | | | | 34.0% | | |
Effect of tax-exempt (loss) | | | | | (25,326) | | | | | | (1.1) | | | | | | (192,883) | | | | | | (10.0) | | |
Other, net | | | | | (60,362) | | | | | | (2.8) | | | | | | (1,264) | | | | | | (0.1) | | |
Actual tax expense and effective rate | | | | $ | 379,799 | | | | | | 17.1% | | | | | $ | 458,487 | | | | | | 23.9% | | |
|
| | | September 30, 2018 | | | December 31, 2017 | | ||||||||||||||||||
| | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||
Total capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 40,603,000 | | | | | | 15.60% | | | | | $ | 37,193,000 | | | | | | 15.67% | | |
For capital adequacy purposes | | | | | 20,819,520 | | | | | | 8.00 | | | | | | 18,986,800 | | | | | | 8.00 | | |
To be well capitalized | | | | | 26,024,400 | | | | | | 10.00 | | | | | | 23,733,500 | | | | | | 10.00 | | |
Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 32,527,000 | | | | | | 12.50% | | | | | $ | 29,228,000 | | | | | | 12.32% | | |
For capital adequacy purposes | | | | | 15,614,640 | | | | | | 6.00 | | | | | | 14,240,100 | | | | | | 6.00 | | |
To be well capitalized | | | | | 20,819,520 | | | | | | 8.00 | | | | | | 18,986,800 | | | | | | 8.00 | �� | |
Tier 1 capital (to average assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 32,527,000 | | | | | | 9.18% | | | | | $ | 29,228,000 | | | | | | 9.05% | | |
For capital adequacy purposes | | | | | 14,610,400 | | | | | | 4.00 | | | | | | 12,920,080 | | | | | | 4.00 | | |
To be well capitalized | | | | | 17,713,000 | | | | | | 5.00 | | | | | | 16,150,100 | | | | | | 5.00 | | |
Common equity Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 32,527,000 | | | | | | 12.50% | | | | | $ | 29,228,000 | | | | | | 12.32% | | |
For capital adequacy purposes | | | | | 11,710,980 | | | | | | 4.50 | | | | | | 10,680,075 | | | | | | 4.50 | | |
To be well capitalized | | | | | 16,915,860 | | | | | | 6.50 | | | | | | 15,426,775 | | | | | | 6.50 | | |
| | | September 30, 2018 | | |||||||||||||||||||||
| | | Level I | | | Level II | | | Level III | | | Total | | ||||||||||||
Assets measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of states and political subdivisions | | | | $ | — | | | | | $ | 1,867,269 | | | | | $ | — | | | | | $ | 1,867,269 | | |
Corporate securities | | | | | — | | | | | | 32,284,683 | | | | | | — | | | | | | 32,284,683 | | |
Mortgage-backed securities – government-sponsored entities | | | | | — | | | | | | 4,670,304 | | | | | | — | | | | | | 4,670,304 | | |
Asset-backed securities | | | | | — | | | | | | 55,505,156 | | | | | | — | | | | | | 55,505,156 | | |
| | | December 31, 2017 | | |||||||||||||||||||||
| | | Level I | | | Level II | | | Level III | | | Total | | ||||||||||||
Assets measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of states and political subdivisions | | | | $ | — | | | | | $ | 32,966,786 | | | | | $ | — | | | | | $ | 32,966,786 | | |
Corporate securities | | | | | — | | | | | | 24,322,283 | | | | | | — | | | | | | 24,322,283 | | |
Mortgage-backed securities – government-sponsored entities | | | | | — | | | | | | 5,972,973 | | | | | | — | | | | | | 5,972,973 | | |
Asset-backed securities | | | | | — | | | | | | 8,297,947 | | | | | | — | | | | | | 8,297,947 | | |
| | | September 30, 2018 | | | Fair Value Measurements at September 30, 2018 | | ||||||||||||||||||||||||
| | | Carrying Value | | | Fair Value | | | Level I | | | Level II | | | Level III | | |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 2,620,026 | | | | | $ | 2,620,026 | | | | | $ | 2,620,026 | | | | | $ | — | | | | | $ | — | | |
Investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale | | | | | 96,327,412 | | | | | | 96,327,412 | | | | | | — | | | | | | 96,327,412 | | | | | | — | | |
Held to maturity | | | | | 1,250,000 | | | | | | 1,230,790 | | | | | | — | | | | | | 1,230,790 | | | | | | — | | |
Loans receivable, net | | | | | 250,325,066 | | | | | | 251,699,318 | | | | | | — | | | | | | — | | | | | | 251,699,318 | | |
Regulatory stock | | | | | 4,443,650 | | | | | | 4,443,650 | | | | | | 4,443,650 | | | | | | — | | | | | | — | | |
Accrued interest receivable | | | | | 1,445,828 | | | | | | 1,445,828 | | | | | | 1,445,828 | | | | | | — | | | | | | — | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 255,389,024 | | | | | $ | 254,224,684 | | | | | $ | 108,427,125 | | | | | $ | — | | | | | $ | 145,797,559 | | |
Other borrowings | | | | | 44,308,300 | | | | | | 44,011,615 | | | | | | — | | | | | | — | | | | | | 44,011,615 | | |
Subordinated debt | | | | | 12,238,541 | | | | | | 12,583,467 | | | | | | — | | | | | | — | | | | | | 12,583,467 | | |
Short-term borrowings | | | | | 22,000,000 | | | | | | 22,000,000 | | | | | | 22,000,000 | | | | | | — | | | | | | — | | |
Accrued interest payable | | | | | 563,036 | | | | | | 563,036 | | | | | | 563,036 | | | | | | — | | | | | | — | | |
| | | December 31, 2017 | | | Fair Value Measurements at December 31, 2017 | | ||||||||||||||||||||||||
| | | Carrying Value | | | Fair Value | | | Level I | | | Level II | | | Level III | | |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 2,413,415 | | | | | $ | 2,413,415 | | | | | $ | 2,413,415 | | | | | $ | — | | | | | $ | — | | |
Investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale | | | | | 71,559,989 | | | | | | 71,559,989 | | | | | | — | | | | | | 71,559,989 | | | | | | — | | |
Held to maturity | | | | | 1,250,000 | | | | | | 1,246,880 | | | | | | — | | | | | | 1,246,880 | | | | | | — | | |
Loans receivable, net | | | | | 238,928,875 | | | | | | 238,565,875 | | | | | | — | | | | | | — | | | | | | 238,565,875 | | |
Regulatory stock | | | | | 5,105,300 | | | | | | 5,105,300 | | | | | | 5,105,300 | | | | | | — | | | | | | — | | |
Accrued interest receivable | | | | | 1,479,378 | | | | | | 1,479,378 | | | | | | 1,479,378 | | | | | | — | | | | | | — | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 208,893,289 | | | | | $ | 205,407,693 | | | | | $ | 73,763,730 | | | | | $ | — | | | | | $ | 131,643,963 | | |
Other borrowings | | | | | 66,992,159 | | | | | | 66,464,000 | | | | | | — | | | | | | — | | | | | | 66,464,000 | | |
Subordinated debt | | | | | 12,211,648 | | | | | | 12,597,374 | | | | | | — | | | | | | — | | | | | | 12,597,374 | | |
Short-term borrowings | | | | | 13,500,000 | | | | | | 13,500,000 | | | | | | 13,500,000 | | | | | | — | | | | | | — | | |
Accrued interest payable | | | | | 430,808 | | | | | | 430,808 | | | | | | 430,808 | | | | | | — | | | | | | — | | |
| | | 2018 | | | 2017 | | ||||||
| | | Unrealized Gains (Losses) on Securities Available for Sale | | | Unrealized Gains (Losses) on Securities Available for Sale | | ||||||
Beginning balance | | | | $ | 788,511 | | | | | $ | 406,538 | | |
Other comprehensive income (loss) before reclassifications | | | | | (131,412) | | | | | | 514,321 | | |
Amounts reclassified from accumulated other comprehensive income | | | | | (576,559) | | | | | | (7,367) | | |
Period change | | | | | (707,971) | | | | | | 506,954 | | |
Ending balance | | | | $ | 80,540 | | | | | $ | 913,492 | | |
|
Details About Accumulated Other Comprehensive Income Components | | | Amount Reclassified from Accumulated Other Comprehensive Income for the Nine-Month Period Ended September 30, 2018(2) | | | Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended September 30, 2017(2) | | | Affected Line Item in the Consolidated Statement of Income | | ||||||
Securities available for sale(1): | | | | | | | | | | | | | | | | |
Investment security gains, net | | | | $ | 729,821 | | | | | $ | 11,162 | | | | Investment securities gains, net | |
Income taxes | | | | | (153,262) | | | | | | (3,795) | | | | Income taxes | |
Total reclassifications for the period | | | | $ | 576,559 | | | | | $ | 7,367 | | | | | |
|
| | | Page Number | |
| | | ||
Financial Statements | | | | |
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| | | Year Ended December 31, | | |||||||||
| | | 2017 | | | 2016 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 1,685,950 | | | | | $ | 2,369,656 | | |
Interest-bearing deposits with other banks | | | | | 198,465 | | | | | | 200,805 | | |
Federal funds sold | | | | | 529,000 | | | | | | 59,000 | | |
Cash and cash equivalents | | | | | 2,413,415 | | | | | | 2,629,461 | | |
Investment securities available for sale; at fair value | | | | | 71,559,989 | | | | | | 66,065,331 | | |
Investment securities held to maturity (fair value $1,246,880) | | | | | 1,250,000 | | | | | | — | | |
Loans held for sale | | | | | — | | | | | | 343,986 | | |
Loans receivable (net of allowance for loan losses of $2,590,000 and $2,300,000) | | | | | 238,928,875 | | | | | | 209,686,829 | | |
Accrued interest receivable | | | | | 1,479,378 | | | | | | 1,288,243 | | |
Premises and equipment | | | | | 2,521,053 | | | | | | 2,624,677 | | |
Regulatory stock | | | | | 5,105,300 | | | | | | 4,542,200 | | |
Other real estate owned | | | | | 2,145,445 | | | | | | 1,613,904 | | |
Other assets | | | | | 499,450 | | | | | | 459,675 | | |
TOTAL ASSETS | | | | $ | 325,902,905 | | | | | $ | 289,254,306 | | |
LIABILITIES | | | | | | | | | | | | | |
Deposits | | | | $ | 208,893,289 | | | | | $ | 191,964,566 | | |
Short-term borrowings | | | | | 13,500,000 | | | | | | 5,000,000 | | |
Other borrowings | | | | | 66,992,159 | | | | | | 61,862,909 | | |
Subordinated debt | | | | | 12,211,648 | | | | | | 5,329,524 | | |
Accrued interest payable | | | | | 430,808 | | | | | | 251,831 | | |
Other liabilities | | | | | 368,137 | | | | | | 493,945 | | |
TOTAL LIABILITIES | | | | | 302,396,041 | | | | | | 264,902,775 | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Preferred stock, $1,000 liquidation value per issued share; 2,970 shares authorized; 2,970 issued and outstanding | | | | | — | | | | | | 2,970,000 | | |
Common stock, $1.00 par value; 10,000,000 shares authorized; 1,392,804 and 1,342,265 issued in 2017 and 2016 | | | | | 1,392,804 | | | | | | 1,342,265 | | |
Additional paid-in capital | | | | | 12,937,350 | | | | | | 12,483,772 | | |
Retained earnings | | | | | 8,616,189 | | | | | | 7,148,956 | | |
Treasury stock at cost, 12,954 and 0 shares in 2017 and 2016 | | | | | (227,990) | | | | | | — | | |
Accumulated other comprehensive income | | | | | 788,511 | | | | | | 406,538 | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 23,506,864 | | | | | | 24,351,531 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 325,902,905 | | | | | $ | 289,254,306 | | |
|
| | | Year Ended December 31, | | |||||||||
| | | 2017 | | | 2016 | | ||||||
INTEREST AND DIVIDEND INCOME | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 10,474,176 | | | | | $ | 9,295,044 | | |
Investment securities | | | | | 1,799,424 | | | | | | 1,587,829 | | |
Other interest and dividend income | | | | | 268,143 | | | | | | 277,854 | | |
Total interest and dividend income | | | | | 12,541,743 | | | | | | 11,160,727 | | |
INTEREST EXPENSE | | | | | | | | | | | | | |
Deposits | | | | | 2,069,395 | | | | | | 2,068,936 | | |
Other borrowings | | | | | 1,686,476 | | | | | | 1,060,839 | | |
Total interest expense | | | | | 3,755,871 | | | | | | 3,129,775 | | |
NET INTEREST INCOME | | | | | 8,785,872 | | | | | | 8,030,952 | | |
Credit (provision) for loan losses | | | | | 290,000 | | | | | | (54,400) | | |
NET INTEREST INCOME AFTER CREDIT (PROVISION) FOR LOAN LOSSES | | | | | 8,495,872 | | | | | | 8,085,352 | | |
NONINTEREST INCOME | | | | | | | | | | | | | |
Service fees on deposit accounts | | | | | 23,730 | | | | | | 20,264 | | |
Investment securities gains, net | | | | | 11,162 | | | | | | 153,665 | | |
Gain on sale of loans, net | | | | | 62,749 | | | | | | 397,402 | | |
Other | | | | | 56,581 | | | | | | 99,591 | | |
Total noninterest income | | | | | 154,222 | | | | | | 670,922 | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | |
Compensation and employee benefits | | | | | 3,691,521 | | | | | | 4,066,669 | | |
Occupancy and equipment | | | | | 402,119 | | | | | | 441,022 | | |
Advertising | | | | | 172,428 | | | | | | 145,878 | | |
Professional fees | | | | | 266,154 | | | | | | 382,892 | | |
Federal deposit insurance expense | | | | | 122,356 | | | | | | 222,228 | | |
Data processing | | | | | 513,183 | | | | | | 578,894 | | |
Pennsylvania shares tax expense | | | | | 190,981 | | | | | | 174,516 | | |
Loss on sale of other real estate owned | | | | | 223,183 | | | | | | — | | |
Other | | | | | 715,356 | | | | | | 855,271 | | |
Total noninterest expense | | | | | 6,297,281 | | | | | | 6,867,370 | | |
Income before income taxes | | | | | 2,352,813 | | | | | | 1,888,904 | | |
Income taxes | | | | | 670,438 | | | | | | 383,626 | | |
NET INCOME | | | | | 1,682,375 | | | | | | 1,505,278 | | |
Dividend on preferred stock | | | | | 85,388 | | | | | | 255,420 | | |
Income available to common stockholders | | | | $ | 1,596,987 | | | | | $ | 1,249,858 | | |
EARNINGS PER SHARE: | | | | | | | | | | | | | |
Basic | | | | $ | 1.19 | | | | | $ | 0.94 | | |
Diluted | | | | | 1.09 | | | | | | 0.84 | | |
WEIGHTED-AVERAGE SHARES OUTSTANDING: | | | | | | | | | | | | | |
Basic | | | | | 1,345,289 | | | | | | 1,332,413 | | |
Diluted | | | | | 1,468,764 | | | | | | 1,484,781 | | |
| | | December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 20,395,142 | | | | | $ | 10,340,055 | | |
Interest-bearing deposit in banks | | | | | 16,315,833 | | | | | | 11,319,156 | | |
Federal funds sold | | | | | 2,271,000 | | | | | | 4,511,000 | | |
Cash and cash equivalents | | | | | 38,981,975 | | | | | | 26,170,211 | | |
Interest-bearing time deposits | | | | | 11,236,000 | | | | | | 13,974,000 | | |
Securities available for sale | | | | | 21,838,833 | | | | | | 21,989,768 | | |
Securities held to maturity, fair value 2019 $1,036,308; 2018 $994,485 | | | | | 1,000,000 | | | | | | 1,000,000 | | |
Loans, net of allowance for loan losses 2019 $3,963,365;2018 $4,583,685 | | | | | 417,183,398 | | | | | | 394,889,629 | | |
Restricted investment in bank stock | | | | | 2,871,800 | | | | | | 3,004,400 | | |
Premises and equipment, net | | | | | 3,460,637 | | | | | | 3,514,922 | | |
Accrued interest receivable | | | | | 1,487,414 | | | | | | 1,352,980 | | |
Bank-owned life insurance | | | | | 11,043,908 | | | | | | 10,782,367 | | |
Other real estate owned | | | | | 1,322,780 | | | | | | 91,593 | | |
Right-of-use asset | | | | | 1,804,674 | | | | | | — | | |
Other assets | | | | | 3,736,182 | | | | | | 2,587,109 | | |
TOTAL ASSETS | | | | $ | 515,967,601 | | | | | $ | 479,356,979 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | |
Noninterest-bearing demand | | | | $ | 77,018,905 | | | | | $ | 70,668,584 | | |
Interest-bearing demand | | | | | 316,425,928 | | | | | | 291,250,060 | | |
Total deposits | | | | | 393,444,833 | | | | | | 361,918,644 | | |
Other borrowed funds | | | | | 3,000,000 | | | | | | 6,000,000 | | |
Long-term debt, Federal Home Loan Bank | | | | | 61,000,000 | | | | | | 60,500,000 | | |
Long-term debt, subordinated | | | | | 10,000,000 | | | | | | 10,000,000 | | |
Accrued interest payable | | | | | 550,771 | | | | | | 550,495 | | |
Lease liability | | | | | 1,808,506 | | | | | | — | | |
Other liabilities | | | | | 4,085,337 | | | | | | 2,264,862 | | |
TOTAL LIABILITIES | | | | | 473,889,447 | | | | | | 441,234,001 | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Common stock, par value $1; 5,000,000 shares authorized; 4,400,434 shares issued and outstanding 2019; 4,400,267 shares issued and outstanding 2018 | | | | | 4,400,434 | | | | | | 4,400,267 | | |
Surplus | | | | | 31,141,011 | | | | | | 30,900,766 | | |
Retained earnings | | | | | 6,459,327 | | | | | | 2,897,304 | | |
Accumulated other comprehensive income (loss) | | | | | 77,382 | | | | | | (75,359) | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 42,078,154 | | | | | | 38,122,978 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 515,967,601 | | | | | $ | 479,356,979 | | |
|
| | | Year Ended December 31, | | |||||||||
| | | 2017 | | | 2016 | | ||||||
Net income | | | | $ | 1,682,375 | | | | | $ | 1,505,278 | | |
Net unrealized gain (loss) on investment securities available for sale | | | | | 396,433 | | | | | | (599,014) | | |
Tax effect | | | | | (136,847) | | | | | | 203,666 | | |
Reclassification adjustment for gains recognized in net income | | | | | (11,162) | | | | | | (153,665) | | |
Tax effect | | | | | 3,795 | | | | | | 52,246 | | |
Other comprehensive income (loss), net of tax | | | | | 252,219 | | | | | | (496,767) | | |
Total comprehensive income | | | | $ | 1,934,594 | | | | | $ | 1,008,511 | | |
|
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
INTEREST AND DIVIDEND INCOME | | | | | | | | | | | | | |
Loans receivable, including fees | | | | $ | 22,051,295 | | | | | $ | 20,264,268 | | |
Securities | | | | | 433,987 | | | | | | 397,896 | | |
Other | | | | | 1,246,371 | | | | | | 1,103,385 | | |
Total interest and dividend income | | | | | 23,731,653 | | | | | | 21,765,549 | | |
INTEREST EXPENSE | | | | | | | | | | | | | |
Deposits | | | | | 5,130,807 | | | | | | 4,205,271 | | |
Borrowings | | | | | 2,095,037 | | | | | | 2,041,297 | | |
Total interest expense | | | | | 7,225,844 | | | | | | 6,246,568 | | |
NET INTEREST INCOME | | | | | 16,505,809 | | | | | | 15,518,981 | | |
Provision for loan losses | | | | | 460,000 | | | | | | 2,931,176 | | |
NET INTEREST INCOME AFTER | | | | | | | | | | | | | |
PROVISION FOR LOAN LOSSES | | | | | 16,045,809 | | | | | | 12,587,805 | | |
NONINTEREST INCOME | | | | | | | | | | | | | |
Service fees | | | | | 343,681 | | | | | | 316,441 | | |
Income on bank-owned life insurance | | | | | 261,540 | | | | | | 273,595 | | |
Other | | | | | 43,558 | | | | | | 63,586 | | |
Total noninterest income | | | | | 648,779 | | | | | | 653,622 | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 7,760,591 | | | | | | 5,877,537 | | |
Occupancy and equipment | | | | | 909,238 | | | | | | 950,859 | | |
Professional fees | | | | | 816,619 | | | | | | 569,719 | | |
Advertising and promotion | | | | | 160,036 | | | | | | 198,483 | | |
Data processing | | | | | 652,709 | | | | | | 619,780 | | |
FDIC assessment | | | | | 106,456 | | | | | | 310,260 | | |
Other real estate owned | | | | | 28,433 | | | | | | 43,378 | | |
Other | | | | | 1,837,040 | | | | | | 1,953,347 | | |
Total noninterest expense | | | | | 12,271,122 | | | | | | 10,523,363 | | |
Income before income tax expense | | | | | 4,423,466 | | | | | | 2,718,064 | | |
Income tax expense | | | | | 861,443 | | | | | | 566,414 | | |
NET INCOME | | | | $ | 3,562,023 | | | | | $ | 2,151,650 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 0.81 | | | | | $ | 0.50 | | |
Diluted | | | | $ | 0.79 | | | | | $ | 0.50 | | |
Weighted average shares outstanding: | | | | | | | | | | | | | |
Basic | | | | | 4,400,342 | | | | | | 4,292,303 | | |
Diluted | | | | | 4,527,193 | | | | | | 4,292,509 | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Treasury Stock | | | Accumulated Other Comprehensive Income | | | Total Stockholders’ Equity | | |||||||||||||||||||||
Balance, December 31, 2015 | | | | $ | 2,970,000 | | | | | $ | 1,330,680 | | | | | $ | 12,348,308 | | | | | $ | 5,899,098 | | | | | $ | — | | | | | $ | 903,305 | | | | | $ | 23,451,391 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,505,278 | | | | | | — | | | | | | — | | | | | | 1,505,278 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (496,767) | | | | | | (496,767) | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | 37,049 | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,049 | | |
Stock options exercised (10,000 shares) | | | | | — | | | | | | 10,000 | | | | | | 90,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 100,000 | | |
Vesting of restricted stock (585 shares) | | | | | — | | | | | | 585 | | | | | | (585) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Exercise of warrants (1,000 shares) | | | | | — | | | | | | 1,000 | | | | | | 9,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,000 | | |
Dividends paid on preferred stock | | | | | — | | | | | | — | | | | | | — | | | | | | (255,420) | | | | | | — | | | | | | — | | | | | | (255,420) | | |
Balance, December 31, 2016 | | | | | 2,970,000 | | | | | | 1,342,265 | | | | | | 12,483,772 | | | | | | 7,148,956 | | | | | | — | | | | | | 406,538 | | | | | | 24,351,531 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,682,375 | | | | | | — | | | | | | — | | | | | | 1,682,375 | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 252,219 | | | | | | 252,219 | | |
Reclassification of certain income tax effects from accumulated other comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | (129,754) | | | | | | — | | | | | | 129,754 | | | | | | — | | |
Acquisition of treasury stock (12,954 shares) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (227,990) | | | | | | — | | | | | | (227,990) | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | 56,600 | | | | | | — | | | | | | — | | | | | | — | | | | | | 56,600 | | |
Stock options exercised (12,954 shares) | | | | | — | | | | | | 12,954 | | | | | | 64,563 | | | | | | — | | | | | | — | | | | | | — | | | | | | 77,517 | | |
Vesting of restricted stock (585 shares) | | | | | — | | | | | | 585 | | | | | | (585) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Exercise of warrants (37,000 shares) | | | | | — | | | | | | 37,000 | | | | | | 333,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 370,000 | | |
Dividends paid on preferred stock | | | | | — | | | | | | — | | | | | | — | | | | | | (85,388) | | | | | | — | | | | | | — | | | | | | (85,388) | | |
Redemption of preferred stock | | | | | (2,970,000) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,970,000) | | |
Balance, December 31, 2017 | | | | $ | — | | | | | $ | 1,392,804 | | | | | $ | 12,937,350 | | | | | $ | 8,616,189 | | | | | $ | (227,990) | | | | | $ | 788,511 | | | | | $ | 23,506,864 | | |
|
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
NET INCOME | | | | $ | 3,562,023 | | | | | $ | 2,151,650 | | |
Other comprehensive income: | | | | | | | | | | | | | |
Unrealized holding gains (losses) on securities available for sale | | | | | 193,338 | | | | | | (10,264) | | |
Income tax effect | | | | | (40,597) | | | | | | 2,155 | | |
Total other comprehensive income (loss) | | | | | 152,741 | | | | | | (8,109) | | |
Total comprehensive income | | | | $ | 3,714,764 | | | | | $ | 2,143,541 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2017 | | | 2016 | | ||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net income | | | | $ | 1,682,375 | | | | | $ | 1,505,278 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Credit (provision) for loan losses | | | | | 290,000 | | | | | | (54,400) | | |
Depreciation, amortization, and accretion, net | | | | | 679,123 | | | | | | 839,351 | | |
Gains on sale of investment securities, net | | | | | (11,162) | | | | | | (153,665) | | ��� |
Proceeds from sale of loans | | | | | 3,321,635 | | | | | | 19,050,293 | | |
Net gain on sale of loans | | | | | (62,749) | | | | | | (397,402) | | |
Loans originated for sale | | | | | (2,914,900) | | | | | | (18,063,553) | | |
Stock-based compensation expense | | | | | 56,600 | | | | | | 37,049 | | |
Deferred income taxes | | | | | 8,196 | | | | | | 41,359 | | |
Increase in accrued interest receivable | | | | | (191,135) | | | | | | (103,563) | | |
Increase in accrued interest payable | | | | | 178,977 | | | | | | 27,517 | | |
Other, net | | | | | (107,339) | | | | | | 138,860 | | |
Net cash provided by operating activities | | | | | 2,929,621 | | | | | | 2,867,124 | | |
INVESTING ACTIVITIES | | | | | | | | | | | | | |
Investment securities held to maturity: | | | | | | | | | | | | | |
Purchases | | | | | (1,250,000) | | | | | | — | | |
Investment securities available for sale: | | | | | | | | | | | | | |
Purchases | | | | | (12,652,392) | | | | | | (1,701,549) | | |
Proceeds from principal repayments and maturities | | | | | 5,046,899 | | | | | | 1,684,702 | | |
Proceeds from sales | | | | | 1,817,466 | | | | | | 4,936,940 | | |
Net increase in loans receivable | | | | | (30,408,223) | | | | | | (24,926,971) | | |
Purchase of premises and equipment | | | | | (50,655) | | | | | | (68,352) | | |
Proceeds from sale of real estate owned | | | | | 165,414 | | | | | | — | | |
Redemption of regulatory stock | | | | | (2,696,600) | | | | | | 897,800 | | |
Purchase of regulatory stock | | | | | 2,133,500 | | | | | | (941,900) | | |
Net cash used for investing activities | | | | | (37,894,591) | | | | | | (20,119,330) | | |
FINANCING ACTIVITIES | | | | | | | | | | | | | |
Net increase in deposits | | | | | 16,928,723 | | | | | | 13,825,074 | | |
Net increase in short-term borrowings | | | | | 8,500,000 | | | | | | 4,004,000 | | |
Proceeds from other borrowed funds | | | | | 28,104,000 | | | | | | 27,457,750 | | |
Repayments on other borrowed funds | | | | | (22,974,750) | | | | | | (26,851,000) | | |
Proceeds from issuance of subordinated debt | | | | | 7,000,000 | | | | | | — | | |
Dividends paid on preferred stock | | | | | (85,388) | | | | | | (255,420) | | |
Proceeds from the exercise share based awards | | | | | 370,000 | | | | | | 110,000 | | |
Proceeds from redemption of preferred stock | | | | | (2,970,000) | | | | | | — | | |
Repurchase treasury stock | | | | | (227,990) | | | | | | — | | |
Net cash provided by financing activities | | | | | 34,644,595 | | | | | | 18,290,404 | | |
Change in cash and cash equivalents | | | | | (216,046) | | | | | | 1,038,198 | | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | | | 2,629,461 | | | | | | 1,591,263 | | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | | | | $ | 2,413,415 | | | | | $ | 2,629,461 | | |
SUPPLEMENTAL CASH FLOW DISCLOSURE | | | | | | | | | | | | | |
Cash paid: | | | | | | | | | | | | | |
Interest | | | | $ | 3,576,894 | | | | | $ | 3,102,258 | | |
Income taxes | | | | | 788,200 | | | | | | 269,041 | | |
Noncash items: | | | | | | | | | | | | | |
Loans transferred to other real estate owned | | | | | 920,138 | | | | | | 1,613,904 | | |
| | | Common Stock | | | Surplus | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total Stockholders’ Equity | | |||||||||||||||
Balance, December 31, 2017 | | | | $ | 4,145,490 | | | | | $ | 28,943,702 | | | | | $ | 745,654 | | | | | $ | (67,250) | | | | | $ | 33,767,596 | | |
Net income | | | | | — | | | | | | — | | | | | | 2,151,650 | | | | | | — | | | | | | 2,151,650 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | (8,109) | | | | | | (8,109) | | |
Exercise of stock options, 121,200 shares | | | | | 121,200 | | | | | | 714,095 | | | | | | — | | | | | | — | | | | | | 835,295 | | |
Proceeds from common stock offering | | | | | 133,577 | | | | | | 968,433 | | | | | | — | | | | | | — | | | | | | 1,102,010 | | |
Compensation expense recognized on stock options | | | | | — | | | | | | 274,536 | | | | | | — | | | | | | — | | | | | | 274,536 | | |
Balance, December 31, 2018 | | | | | 4,400,267 | | | | | | 30,900,766 | | | | | | 2,897,304 | | | | | | (75,359) | | | | | | 38,122,978 | | |
Net income | | | | | — | | | | | | — | | | | | | 3,562,023 | | | | | | — | | | | | | 3,562,023 | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | 152,741 | | | | | | 152,741 | | |
Exercise of stock options, 167 shares | | | | | 167 | | | | | | 1,211 | | | | | | — | | | | | | — | | | | | | 1,378 | | |
Compensation expense recognized on stock options | | | | | — | | | | | | 239,034 | | | | | | — | | | | | | — | | | | | | 239,034 | | |
Balance, December 31, 2019 | | | | $ | 4,400,434 | | | | | $ | 31,141,011 | | | | | $ | 6,459,327 | | | | | $ | 77,382 | | | | | $ | 42,078,154 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net income | | | | $ | 3,562,023 | | | | | $ | 2,151,650 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Provision for loan losses | | | | | 460,000 | | | | | | 2,931,176 | | |
Depreciation of bank premises and equipment | | | | | 293,985 | | | | | | 336,730 | | |
Amortization of right of use asset | | | | | 144,306 | | | | | | — | | |
Net amortization of securities, premiums, and discounts | | | | | 122,574 | | | | | �� | 141,085 | | |
Compensation expense on stock options | | | | | 239,034 | | | | | | 274,536 | | |
Deferred income taxes | | | | | (66,754) | | | | | | 562,371 | | |
Net realized losses on sales of other real estate owned | | | | | — | | | | | | 3,782 | | |
Write-down of other real estate owned | | | | | 76,380 | | | | | | 11,907 | | |
Income on cash surrender value of bank-owned life insurance | | | | | (261,540) | | | | | | (273,595) | | |
Net decrease in servicing assets | | | | | 32,680 | | | | | | 111,483 | | |
Increase in accrued interest receivable | | | | | (134,434) | | | | | | (79,306) | | |
Increase in accrued interest payable | | | | | 276 | | | | | | 105,320 | | |
Other, net | | | | | 163,158 | | | | | | 182,997 | | |
Net cash provided by operating activities | | | | | 4,631,688 | | | | | | 6,460,136 | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Activity in available-for-sale securities: | | | | | | | | | | | | | |
Purchases | | | | | (12,162,096) | | | | | | (40,487,865) | | |
Maturities, calls, and principal repayments | | | | | 12,383,794 | | | | | | 42,106,952 | | |
Net maturities (purchases) of interest-bearing time deposits | | | | | 2,738,000 | | | | | | 256,999 | | |
Net increase in loans | | | | | (23,943,470) | | | | | | (26,344,145) | | |
Proceeds of sales (purchases) of restricted bank stock, net | | | | | 132,600 | | | | | | (450,800) | | |
Purchases of bank premises and equipment | | | | | (239,702) | | | | | | (112,990) | | |
Proceeds from sale of other real estate owned | | | | | 243,383 | | | | | | 533,462 | | |
Net cash used for investing activities | | | | | (20,847,491) | | | | | | (24,498,387) | | |
FINANCING ACTIVITIES | | | | | | | | | | | | | |
Net increase in deposits | | | | | 31,526,189 | | | | | | 16,440,895 | | |
Increase in other borrowed funds | | | | | — | | | | | | 3,000,000 | | |
Decrease in other borrowed funds | | | | | (3,000,000) | | | | | | — | | |
Proceeds from long-term debt, Federal Home Loan Bank | | | | | 10,000,000 | | | | | | 15,000,000 | | |
Payments from long-term debt, Federal Home Loan Bank | | | | | (9,500,000) | | | | | | (6,400,000) | | |
Proceeds from issuance of common stock | | | | | — | | | | | | 1,102,010 | | |
Proceeds from exercise of stock compensation options | | | | | 1,378 | | | | | | 835,295 | | |
Net cash provided by financing activities | | | | | 29,027,567 | | | | | | 29,978,200 | | |
Increase in cash and cash equivalents | | | | | 12,811,764 | | | | | | 11,939,949 | | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | | | | | 26,170,211 | | | | | | 14,230,262 | | |
CASH AND CASH EQUIVALENTS AT END OF YEAR | | | | $ | 38,981,975 | | | | | $ | 26,170,211 | | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | | | | | | | | | | | | | |
Cash paid during the year for: | | | | | | | | | | | | | |
Interest paid | | | | $ | 7,225,568 | | | | | $ | 6,141,248 | | |
Income taxes paid | | | | | 926,500 | | | | | | 120,000 | | |
Addition in right-of-use asset and lease liability | | | | | 73,829 | | | | | | — | | |
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES | | | | | | | | | | | | | |
Other real estate owned acquired in settlement of loans | | | | $ | 1,550,950 | | | | | $ | 147,994 | | |
Lease adoption: | | | | | | | | | | | | | |
Right-of-use asset and lease liability | | | | | 1,875,152 | | | | | | — | | |
| | | Years | |
Buildings | | | 40 | |
Building and leasehold improvements | | | 2 – 40 | |
Furniture, fixtures, and equipment | | | 2 – 5 | |
Data processing software | | | 2 – 5 | |
| | | 2017 | | | 2016 | | ||||||
Weighted-average common shares outstanding (basic) | | | | | 1,345,289 | | | | | | 1,332,413 | | |
Additional common stock equivalents (stock options) used to calculate diluted earnings per share | | | | | 40,680 | | | | | | 40,924 | | |
Additional common stock equivalents (warrants) used to calculate diluted earnings per share | | | | | 82,795 | | | | | | 111,444 | | |
Weighted-average common shares outstanding (diluted) | | | | | 1,468,764 | | | | | | 1,484,781 | | |
|
| | | 2019 | | | 2018 | | ||||||
Net income attributable to shareholders | | | | $ | 3,562,023 | | | | | $ | 2,151,650 | | |
Weighted-average basic number of shares | | | | | 4,400,342 | | | | | | 4,292,303 | | |
Dilutive effect of options | | | | | 126,851 | | | | | | 206 | | |
Weighted-average diluted number of shares | | | | | 4,527,193 | | | | | | 4,292,509 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 0.81 | | | | | $ | 0.50 | | |
Diluted | | | | | 0.79 | | | | | | 0.50 | | |
| | | 2017 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Obligations of states and political subdivisions | | | | $ | 32,206,082 | | | | | $ | 787,111 | | | | | $ | (26,407) | | | | | $ | 32,966,786 | | |
Corporate securities | | | | | 23,999,432 | | | | | | 337,987 | | | | | | (15,136) | | | | | | 24,322,283 | | |
Mortgage-backed securities – government-sponsored entities | | | | | 5,936,867 | | | | | | 40,919 | | | | | | (4,813) | | | | | | 5,972,973 | | |
Asset-backed securities | | | | | 8,416,372 | | | | | | 18,835 | | | | | | (137,260) | | | | | | 8,297,947 | | |
Total | | | | $ | 70,558,753 | | | | | $ | 1,184,852 | | | | | $ | (183,616) | | | | | $ | 71,559,989 | | |
|
| | | 2016 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Obligations of states and political subdivisions | | | | $ | 35,530,948 | | | | | $ | 894,572 | | | | | $ | (42,425) | | | | | $ | 36,383,095 | | |
Corporate securities | | | | | 13,675,748 | | | | | | 128,875 | | | | | | (96,086) | | | | | | 13,708,537 | | |
Mortgage-backed securities – government-sponsored entities | | | | | 7,054,088 | | | | | | 38,821 | | | | | | (649) | | | | | | 7,092,260 | | |
Asset-backed securities | | | | | 9,188,582 | | | | | | — | | | | | | (307,143) | | | | | | 8,881,439 | | |
Total | | | | $ | 65,449,366 | | | | | $ | 1,062,268 | | | | | $ | (446,303) | | | | | $ | 66,065,331 | | |
|
| | | 2017 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Corporate securities | | | | $ | 1,250,000 | | | | | $ | — | | | | | $ | (3,120) | | | | | $ | 1,246,880 | | |
Total | | | | $ | 1,250,000 | | | | | $ | — | | | | | $ | (3,120) | | | | | $ | 1,246,880 | | |
|
| | | 2019 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
AVAILABLE FOR SALE | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. treasury bills | | | | $ | 9,999,611 | | | | | $ | 389 | | | | | $ | — | | | | | $ | 10,000,000 | | |
Mortgage-backed securities – U.S. government-sponsored enterprises, residential | | | | | 3,883,202 | | | | | | 5,203 | | | | | | (31,919) | | | | | | 3,856,486 | | |
Corporate debt securities | | | | | 2,000,000 | | | | | | 39,968 | | | | | | — | | | | | | 2,039,968 | | |
State and municipal securities | | | | | 3,094,240 | | | | | | 67,829 | | | | | | (80) | | | | | | 3,161,989 | | |
SBA asset-backed securities | | | | | 2,763,828 | | | | | | 16,853 | | | | | | (291) | | | | | | 2,780,390 | | |
Total | | | | $ | 21,740,881 | | | | | $ | 130,242 | | | | | $ | (32,290) | | | | | $ | 21,838,833 | | |
HELD TO MATURITY | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities | | | | $ | 1,000,000 | | | | | $ | 36,308 | | | | | $ | — | | | | | $ | 1,036,308 | | |
|
| | | 2018 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
AVAILABLE FOR SALE | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. treasury bills | | | | $ | 9,998,805 | | | | | $ | 1,195 | | | | | $ | — | | | | | $ | 10,000,000 | | |
Mortgage-backed securities – U.S. government-sponsored enterprises, residential | | | | | 5,370,502 | | | | | | 388 | | | | | | (136,574) | | | | | | 5,234,316 | | |
Corporate debt securities | | | | | 2,000,000 | | | | | | 43,128 | | | | | | (5,659) | | | | | | 2,037,469 | | |
State and municipal securities | | | | | 2,510,861 | | | | | | 14,226 | | | | | | (3,961) | | | | | | 2,521,126 | | |
SBA asset-backed securities | | | | | 2,204,986 | | | | | | 920 | | | | | | (9,049) | | | | | | 2,196,857 | | |
Total | | | | $ | 22,085,154 | | | | | $ | 59,857 | | | | | $ | (155,243) | | | | | $ | 21,989,768 | | |
HELD TO MATURITY | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities | | | | $ | 1,000,000 | | | | | $ | — | | | | | $ | (5,515) | | | | | $ | 994,485 | | |
|
| | | Securities Available for Sale | | | Held to Maturity | | ||||||||||||||||||
Investment Securities | | | Amortized Cost | | | Fair Value | | | Amortized Cost | | | Fair Value | | ||||||||||||
Due within one year | | | | $ | 9,999,611 | | | | | $ | 10,000,000 | | | | | $ | — | | | | | $ | — | | |
Due after one year through five years | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Due after five years through ten years | | | | | 2,409,218 | | | | | | 2,454,945 | | | | | | 1,000,000 | | | | | | 1,036,308 | | |
Due after ten years | | | | | 2,685,022 | | | | | | 2,747,012 | | | | | | — | | | | | | — | | |
| | | | | 15,093,851 | | | | | | 15,201,957 | | | | | | 1,000,000 | | | | | | 1,036,308 | | |
Mortgage-backed securities, government- sponsored enterprises,residential | | | | | 3,883,202 | | | | | | 3,856,486 | | | | | | — | | | | | | — | | |
SBA asset-backed securities | | | | | 2,763,828 | | | | | | 2,780,390 | | | | | | — | | | | | | — | | |
Total | | | | $ | 21,740,881 | | | | | $ | 21,838,833 | | | | | $ | 1,000,000 | | | | | $ | 1,036,308 | | |
| | | December 31, 2017 | | |||||||||||||||||||||||||||||||||
| | | Less than Twelve Months | | | Twelve Months or Greater | | | Total | | |||||||||||||||||||||||||||
| | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | ||||||||||||||||||
Obligations of states and political subdivisions | | | | $ | 2,193,182 | | | | | $ | (26,407) | | | | | $ | — | | | | | $ | — | | | | | $ | 2,193,182 | | | | | $ | (26,407) | | |
Corporate securities | | | | | 996,880 | | | | | | (3,120) | | | | | | 3,143,526 | | | | | | (15,136) | | | | | | 4,140,406 | | | | | | (18,256) | | |
Mortgage-backed securities – government-sponsored entities | | | | | 1,304,971 | | | | | | (4,813) | | | | | | — | | | | | | — | | | | | | 1,304,971 | | | | | | (4,813) | | |
Asset-backed securities | | | | | — | | | | | | — | | | | | | 7,365,808 | | | | | | (137,260) | | | | | | 7,365,808 | | | | | | (137,260) | | |
Total | | | | $ | 4,495,033 | | | | | $ | (34,340) | | | | | $ | 10,509,334 | | | | | $ | (152,396) | | | | | $ | 15,004,367 | | | | | $ | (186,736) | | |
|
| | | December 31, 2016 | | |||||||||||||||||||||||||||||||||
| | | Less than Twelve Months | | | Twelve Months or Greater | | | Total | | |||||||||||||||||||||||||||
| | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | ||||||||||||||||||
Obligations of states and political subdivisions | | | | $ | 3,849,712 | | | | | $ | (42,425) | | | | | $ | — | | | | | $ | — | | | | | $ | 3,849,712 | | | | | $ | (42,425) | | |
Corporate securities | | | | | 745,844 | | | | | | (3,832) | | | | | | 5,358,398 | | | | | | (92,254) | | | | | | 6,104,242 | | | | | | (96,086) | | |
Mortgage-backed securities – government-sponsored entities | | | | | 1,566,655 | | | | | | (649) | | | | | | — | | | | | | — | | | | | | 1,566,655 | | | | | | (649) | | |
Asset-backed securities | | | | | 1,065,601 | | | | | | (438) | | | | | | 7,815,838 | | | | | | (306,705) | | | | | | 8,881,439 | | | | | | (307,143) | | |
Total | | | | $ | 7,227,812 | | | | | $ | (47,344) | | | | | $ | 13,174,236 | | | | | $ | (398,959) | | | | | $ | 20,402,048 | | | | | $ | (446,303) | | |
|
| | | 2019 | | |||||||||||||||||||||||||||||||||
| | | Less than Twelve Months | | | Twelve Months or Greater | | | Total | | |||||||||||||||||||||||||||
| | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | ||||||||||||||||||
Mortgage-backed securities | | | | $ | 218,431 | | | | | $ | (1,923) | | | | | $ | 3,052,902 | | | | | $ | (29,996) | | | | | $ | 3,271,333 | | | | | $ | (31,919) | | |
Corporate debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
State and municipal securities | | | | | 107,176 | | | | | | (80) | | | | | | — | | | | | | — | | | | | | 107,176 | | | | | | (80) | | |
Asset-backed securities | | | | | 315,416 | | | | | | (291) | | | | | | — | | | | | | — | | | | | | 315,416 | | | | | | (291) | | |
Total temporarily impaired securities | | | | $ | 641,023 | | | | | $ | (2,294) | | | | | $ | 3,052,902 | | | | | $ | (29,996) | | | | | $ | 3,693,925 | | | | | $ | (32,290) | | |
|
| | | 2018 | | |||||||||||||||||||||||||||||||||
| | | Less than Twelve Months | | | Twelve Months or Greater | | | Total | | |||||||||||||||||||||||||||
| | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | ||||||||||||||||||
Mortgage-backed securities | | | | $ | 107,977 | | | | | $ | (2,616) | | | | | $ | 4,876,046 | | | | | $ | (133,958) | | | | | $ | 4,984,023 | | | | | $ | (136,574) | | |
Corporate debt securities | | | | | 1,488,825 | | | | | | (11,174) | | | | | | — | | | | | | — | | | | | | 1,488,825 | | | | | | (11,174) | | |
State and municipal securities | | | | | 417,600 | | | | | | (342) | | | | | | 578,135 | | | | | | (3,619) | | | | | | 995,735 | | | | | | (3,961) | | |
Asset-backed securities | | | | | 128,318 | | | | | | (568) | | | | | | 1,896,658 | | | | | | (8,481) | | | | | | 2,024,976 | | | | | | (9,049) | | |
Total temporarily impaired securities | | | | $ | 2,142,720 | | | | | $ | (14,700) | | | | | $ | 7,350,839 | | | | | $ | (146,058) | | | | | $ | 9,493,559 | | | | | $ | (160,758) | | |
| | | Available for Sale | | | Held to Maturity | | ||||||||||||||||||
| | | Amortized Cost | | | Fair Value | | | Amortized Cost | | | Fair Value | | ||||||||||||
Due within one year | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Due after one year through five years | | | | | 11,713,305 | | | | | | 11,789,991 | | | | | | — | | | | | | — | | |
Due after five years through ten years | | | | | 35,022,943 | | | | | | 35,713,463 | | | | | | 1,250,000 | | | | | | 1,246,880 | | |
Due after ten years | | | | | 23,822,505 | | | | | | 24,056,535 | | | | | | — | | | | | | — | | |
Total | | | | $ | 70,558,753 | | | | | $ | 71,559,989 | | | | | $ | 1,250,000 | | | | | $ | 1,246,880 | | |
|
| | | 2019 | | | 2018 | | ||||||
Commercial and industrial | | | | $ | 53,098,390 | | | | | $ | 60,702,307 | | |
Commercial real estate | | | | | 361,199,156 | | | | | | 331,030,301 | | |
Residential real estate | | | | | 7,402,234 | | | | | | 7,143,954 | | |
Consumer, other | | | | | 225,778 | | | | | | 1,523,236 | | |
| | | | | 421,925,558 | | | | | | 400,399,798 | | |
Unearned net loan origination fees and costs | | | | | (778,795) | | | | | | (926,484) | | |
Allowance for loan losses | | | | | (3,963,365) | | | | | | (4,583,685) | | |
Net loans | | | | $ | 417,183,398 | | | | | $ | 394,889,629 | | |
| | | 2017 | | | 2016 | | ||||||
Proceeds from sales | | | | $ | 1,817,466 | | | | | $ | 4,936,940 | | |
Gross gains | | | | | 11,162 | | | | | | 153,665 | | |
Gross losses | | | | | — | | | | | | — | | |
| | | 2017 | | | 2016 | | ||||||
Real estate loans: | | | | | | | | | | | | | |
Construction | | | | $ | 2,661,651 | | | | | $ | 4,410,565 | | |
Residential | | | | | 100,653,217 | | | | | | 83,942,478 | | |
Commercial | | | | | 133,939,605 | | | | | | 122,659,138 | | |
Commercial | | | | | 3,464,248 | | | | | | 658,608 | | |
Consumer | | | | | 1,004,463 | | | | | | 500,373 | | |
| | | | | 241,723,184 | | | | | | 212,171,162 | | |
Less: | | | | | | | | | | | | | |
Deferred loan costs | | | | | 204,309 | | | | | | 184,333 | | |
Allowance for loan losses | | | | | 2,590,000 | | | | | | 2,300,000 | | |
Total | | | | $ | 238,928,875 | | | | | $ | 209,686,829 | | |
|
| | | Loans to Insiders For the Years Ended December 31, | | |||||||||
| | | 2017 | | | 2016 | | ||||||
Beginning balance | | | | $ | 1,000,487 | | | | | $ | 2,186,830 | | |
Advances | | | | | 148,357 | | | | | | 1,253,000 | | |
Repayments | | | | | (65,084) | | | | | | (2,439,343) | | |
Ending balance | | | | $ | 1,083,760 | | | | | $ | 1,000,487 | | |
|
| | | 2019 | | |||||||||||||||||||||||||||||||||
| | | Commercial and Industrial | | | Commercial Real Estate | | | Residential Real Estate | | | Consumer Other | | | Unallocated | | | Total | | ||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 1,715,497 | | | | | $ | 2,261,919 | | | | | $ | 14,325 | | | | | $ | 5,277 | | | | | $ | 586,667 | | | | | $ | 4,583,685 | | |
Charge-offs | | | | | (1,256,987) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,256,987) | | |
Recoveries | | | | | 71,108 | | | | | | 105,559 | | | | | | — | | | | | | — | | | | | | — | | | | | | 176,667 | | |
Provision (credit) | | | | | 999,648 | | | | | | (354,970) | | | | | | (6,218) | | | | | | (4,954) | | | | | | (173,506) | | | | | | 460,000 | | |
Ending balance | | | | $ | 1,529,266 | | | | | $ | 2,012,508 | | | | | $ | 8,107 | | | | | $ | 323 | | | | | $ | 413,161 | | | | | $ | 3,963,365 | | |
Ending balance: individually evaluated for impairment | | | | $ | 125,674 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 125,674 | | |
Ending balance: collectively evaluated for impairment | | | | $ | 1,403,592 | | | | | $ | 2,012,508 | | | | | $ | 8,107 | | | | | $ | 323 | | | | | $ | 413,161 | | | | | $ | 3,837,691 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | | | $ | 1,415,916 | | | | | $ | 1,458,311 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,874,227 | | |
Ending balance: collectively evaluated for impairment | | | | | 51,682,474 | | | | | | 359,740,845 | | | | | | 7,402,234 | | | | | | 225,778 | | | | | | — | | | | | | 419,051,331 | | |
Ending balance | | | | $ | 53,098,390 | | | | | $ | 361,199,156 | | | | | $ | 7,402,234 | | | | | $ | 225,778 | | | | | $ | — | | | | | $ | 421,925,558 | | |
|
| | | Construction Real Estate | | | Residential Real Estate | | | Commercial Real Estate | | | Commercial | | | Consumer | | | Unallocated | | | Total | | |||||||||||||||||||||
Balance, December 31, 2015 | | | | $ | 72,000 | | | | | $ | 729,000 | | | | | $ | 1,178,000 | | | | | $ | 20,000 | | | | | $ | 11,000 | | | | | $ | 43,000 | | | | | $ | 2,053,000 | | |
Add provisions (credit) charged to operations | | | | | (19,000) | | | | | | 179,000 | | | | | | (168,400) | | | | | | (11,000) | | | | | | (1,000) | | | | | | (34,000) | | | | | | (54,400) | | |
Add recoveries | | | | | — | | | | | | — | | | | | | 525,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 525,000 | | |
Less loans charged off | | | | | — | | | | | | — | | | | | | (223,600) | | | | | | — | | | | | | — | | | | | | — | | | | | | (223,600) | | |
Balance, December 31, 2016 | | | | | 53,000 | | | | | | 908,000 | | | | | | 1,311,000 | | | | | | 9,000 | | | | | | 10,000 | | | | | | 9,000 | | | | | | 2,300,000 | | |
Add provisions (credit) charged to operations | | | | | (23,000) | | | | | | 172,000 | | | | | | 116,000 | | | | | | 26,000 | | | | | | — | | | | | | (1,000) | | | | | | 290,000 | | |
Add recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Less loans charged off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, December 31, 2017 | | | | $ | 30,000 | | | | | $ | 1,080,000 | | | | | $ | 1,427,000 | | | | | $ | 35,000 | | | | | $ | 10,000 | | | | | $ | 8,000 | | | | | $ | 2,590,000 | | |
|
| | | 2018 | | |||||||||||||||||||||||||||||||||
| | | Commercial and Industrial | | | Commercial Real Estate | | | Residential Real Estate | | | Consumer Other | | | Unallocated | | | Total | | ||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 1,593,146 | | | | | $ | 2,963,502 | | | | | $ | 12,930 | | | | | $ | 453 | | | | | $ | 102,572 | | | | | $ | 4,672,603 | | |
Charge-offs | | | | | (3,113,833) | | | | | | (124,450) | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,238,283) | | |
Recoveries | | | | | 129,459 | | | | | | 13,974 | | | | | | 74,756 | | | | | | — | | | | | | — | | | | | | 218,189 | | |
Provision (credit) | | | | | 3,106,725 | | | | | | (591,107) | | | | | | (73,361) | | | | | | 4,824 | | | | | | 484,095 | | | | | | 2,931,176 | | |
Ending balance | | | | $ | 1,715,497 | | | | | $ | 2,261,919 | | | | | $ | 14,325 | | | | | $ | 5,277 | | | | | $ | 586,667 | | | | | $ | 4,583,685 | | |
Ending balance: individually evaluated for impairment | | | | $ | 137,643 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 137,643 | | |
Ending balance: collectively evaluated for impairment | | | | $ | 1,577,854 | | | | | $ | 2,261,919 | | | | | $ | 14,325 | | | | | $ | 5,277 | | | | | $ | 586,667 | | | | | $ | 4,446,042 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | | | $ | 1,828,936 | | | | | $ | 3,958,997 | | | | | $ | — | | | | | $ | — | | | | | | — | | | | | $ | 5,787,933 | | |
Ending balance: collectively evaluated for impairment | | | | | 58,873,371 | | | | | | 327,071,304 | | | | | | 7,143,954 | | | | | | 1,523,236 | | | | | | — | | | | | | 394,611,865 | | |
Ending balance | | | | $ | 60,702,307 | | | | | $ | 331,030,301 | | | | | $ | 7,143,954 | | | | | $ | 1,523,236 | | | | | $ | — | | | | | $ | 400,399,798 | | |
|
| | | 2017 | | |||||||||||||||||||||||||||||||||||||||
| | | Construction Real Estate | | | Residential Real Estate | | | Commercial Real Estate | | | Commercial | | | Consumer | | | Unallocated | | | Total | | |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 30,000 | | | | | | 1,080,000 | | | | | | 1,427,000 | | | | | | 35,000 | | | | | | 10,000 | | | | | | 8,000 | | | | | | 2,590,000 | | |
Total | | | | $ | 30,000 | | | | | $ | 1,080,000 | | | | | $ | 1,427,000 | | | | | $ | 35,000 | | | | | $ | 10,000 | | | | | $ | 8,000 | | | | | $ | 2,590,000 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | 1,026,328 | | | | | $ | 2,342,847 | | | | | $ | 9,494 | | | | | $ | — | | | | | | | | | | | $ | 3,378,669 | | |
Collectively evaluated for impairment | | | | | 2,661,651 | | | | | | 99,626,889 | | | | | | 131,596,758 | | | | | | 3,454,754 | | | | | | 1,004,463 | | | | | | — | | | | | | 238,344,515 | | |
Total | | | | $ | 2,661,651 | | | | | $ | 100,653,217 | | | | | $ | 133,939,605 | | | | | $ | 3,464,248 | | | | | $ | 1,004,463 | | | | | | | | | | | $ | 241,723,184 | | |
|
| | | 2016 | | |||||||||||||||||||||||||||||||||||||||
| | | Construction Real Estate | | | Residential Real Estate | | | Commercial Real Estate | | | Commercial | | | Consumer | | | Unallocated | | | Total | | |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 53,000 | | | | | | 908,000 | | | | | | 1,311,000 | | | | | | 9,000 | | | | | | 10,000 | | | | | | 9,000 | | | | | | 2,300,000 | | |
Total | | | | $ | 53,000 | | | | | $ | 908,000 | | | | | $ | 1,311,000 | | | | | $ | 9,000 | | | | | $ | 10,000 | | | | | $ | 9,000 | | | | | $ | 2,300,000 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | 1,053,052 | | | | | $ | 4,135,471 | | | | | $ | 9,529 | | | | | $ | — | | | | | | | | | | | $ | 5,198,052 | | |
Collectively evaluated for impairment | | | | | 4,410,565 | | | | | | 82,889,426 | | | | | | 118,523,667 | | | | | | 649,079 | | | | | | 500,373 | | | | | | | | | | | | 206,973,110 | | |
Total | | | | $ | 4,410,565 | | | | | $ | 83,942,478 | | | | | $ | 122,659,138 | | | | | $ | 658,608 | | | | | $ | 500,373 | | | | | | | | | | | $ | 212,171,162 | | |
|
| | | 2019 | | |||||||||||||||||||||||||||
| | | Recorded Investment | | | Unpaid Principal Balance | | | Related Allowance | | | Average Recorded Investment | | | Interest Income Recognized | | |||||||||||||||
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | | $ | 1,192,669 | | | | | $ | 4,141,598 | | | | | $ | — | | | | | $ | 2,513,496 | | | | | $ | 37,399 | | |
Commercial real estate | | | | | 1,458,311 | | | | | | 2,512,353 | | | | | | — | | | | | | 2,745,108 | | | | | | 63,218 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 2,650,980 | | | | | $ | 6,653,951 | | | | | $ | — | | | | | $ | 5,258,604 | | | | | $ | 100,617 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | | $ | 223,247 | | | | | $ | 223,247 | | | | | $ | 125,674 | | | | | $ | 233,207 | | | | | $ | 14,117 | | |
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 223,247 | | | | | $ | 223,247 | | | | | $ | 125,674 | | | | | $ | 233,207 | | | | | $ | 14,117 | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | | $ | 1,415,916 | | | | | $ | 4,364,845 | | | | | $ | 125,674 | | | | | $ | 2,746,703 | | | | | $ | 51,516 | | |
Commercial real estate | | | | | 1,458,311 | | | | | | 2,512,353 | | | | | | — | | | | | | 2,745,108 | | | | | | 63,218 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 2,874,227 | | | | | $ | 6,877,198 | | | | | $ | 125,674 | | | | | $ | 5,491,811 | | | | | $ | 114,734 | | |
| | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 131,463,416 | | | | | $ | 306,481 | | | | | $ | 920,217 | | | | | $ | 1,249,491 | | | | | $ | 133,939,605 | | |
Commercial | | | | | 3,454,754 | | | | | | 9,494 | | | | | | — | | | | | | — | | | | | | 3,464,248 | | |
Total | | | | $ | 134,918,170 | | | | | $ | 315,975 | | | | | $ | 920,217 | | | | | $ | 1,249,491 | | | | | $ | 137,403,853 | | |
��� |
| | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 118,258,487 | | | | | $ | 442,694 | | | | | $ | 3,368,939 | | | | | $ | 589,018 | | | | | $ | 122,659,138 | | |
Commercial | | | | | 649,079 | | | | | | 9,529 | | | | | | — | | | | | | — | | | | | | 658,608 | | |
Total | | | | $ | 118,907,566 | | | | | $ | 452,223 | | | | | $ | 3,368,939 | | | | | $ | 589,018 | | | | | $ | 123,317,746 | | |
|
| | | 2018 | | |||||||||||||||||||||||||||
| | | Recorded Investment | | | Unpaid Principal Balance | | | Related Allowance | | | Average Recorded Investment | | | Interest Income Recognized | | |||||||||||||||
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | | $ | 1,585,881 | | | | | $ | 3,226,692 | | | | | $ | — | | | | | $ | 1,770,164 | | | | | $ | 1,111 | | |
Commercial real estate | | | | | 3,958,997 | | | | | | 7,825,692 | | | | | | — | | | | | | 4,982,237 | | | | | | 56,825 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 5,544,878 | | | | | $ | 11,052,384 | | | | | $ | — | | | | | $ | 6,752,401 | | | | | $ | 57,936 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | | $ | 243,055 | | | | | $ | 243,055 | | | | | $ | 137,643 | | | | | $ | 252,719 | | | | | $ | 15,665 | | |
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 243,055 | | | | | $ | 243,055 | | | | | $ | 137,643 | | | | | $ | 252,719 | | | | | $ | 15,665 | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | | $ | 1,828,936 | | | | | $ | 3,469,747 | | | | | $ | 137,643 | | | | | $ | 2,022,883 | | | | | $ | 16,776 | | |
Commercial real estate | | | | | 3,958,997 | | | | | | 7,825,692 | | | | | | — | | | | | | 4,982,237 | | | | | | 56,825 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 5,787,933 | | | | | $ | 11,295,439 | | | | | $ | 137,643 | | | | | $ | 7,005,120 | | | | | $ | 73,601 | | |
| | | Performing | | | Nonperforming | | | Total | | |||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | |
Construction | | | | $ | 2,661,651 | | | | | $ | — | | | | | $ | 2,661,651 | | |
Residential | | | | | 100,653,217 | | | | | | — | | | | | | 100,653,217 | | |
Consumer | | | | | 1,004,463 | | | | | | — | | | | | | 1,004,463 | | |
Total | | | | $ | 104,319,331 | | | | | $ | — | | | | | $ | 104,319,331 | | |
|
| | | Performing | | | Nonperforming | | | Total | | |||||||||
December 31, 2016 | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | |
Construction | | | | $ | 4,410,565 | | | | | $ | — | | | | | $ | 4,410,565 | | |
Residential | | | | | 83,942,478 | | | | | | — | | | | | | 83,942,478 | | |
Consumer | | | | | 500,373 | | | | | | — | | | | | | 500,373 | | |
Total | | | | $ | 88,853,416 | | | | | $ | — | | | | | $ | 88,853,416 | | |
|
| | | 2019 | | | 2018 | | ||||||||||||||||||||||||||||||
| | | Commercial and Industrial | | | Commercial Real Estate | | | Total | | | Commercial and Industrial | | | Commercial Real Estate | | | Total | | ||||||||||||||||||
Pass | | | | $ | 48,416,925 | | | | | $ | 355,163,799 | | | | | $ | 403,580,724 | | | | | $ | 56,663,746 | | | | | $ | 325,650,167 | | | | | $ | 382,313,913 | | |
Special Mention | | | | | — | | | | | | 50,061 | | | | | | 50,061 | | | | | | — | | | | | | 254,858 | | | | | | 254,858 | | |
Substandard | | | | | 3,694,448 | | | | | | 5,922,796 | | | | | | 9,617,244 | | | | | | 4,038,561 | | | | | | 5,125,276 | | | | | | 9,163,837 | | |
Doubtful | | | | | 987,017 | | | | | | 62,500 | | | | | | 1,049,517 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 53,098,390 | | | | | $ | 361,199,156 | | | | | $ | 414,297,546 | | | | | $ | 60,702,307 | | | | | $ | 331,030,301 | | | | | $ | 391,732,608 | | |
| | | Current | | | 31 – 60 Days Past Due | | | 61 – 90 Days Past Due | | | Greater Than 90 Days Past Due | | | Total Loans | | | Nonaccrual | | ||||||||||||||||||
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | | $ | 2,661,651 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,661,651 | | | | | $ | — | | |
Residential | | | | | 100,653,217 | | | | | | — | | | | | | — | | | | | | — | | | | | | 100,653,217 | | | | | | — | | |
Commercial | | | | | 132,690,114 | | | | | | 203,312 | | | | | | — | | | | | | 1,046,179 | | | | | | 133,939,605 | | | | | | 1,249,491 | | |
Commercial | | | | | 3,464,248 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,464,248 | | | | | | — | | |
Consumer | | | | | 1,004,463 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,004,463 | | | | | | — | | |
Total | | | | $ | 240,473,694 | | | | | $ | 203,312 | | | | | $ | — | | | | | $ | 1,046,179 | | | | | $ | 241,723,184 | | | | | $ | 1,249,491 | | |
|
| | | Current | | | 31 – 60 Days Past Due | | | 61 – 90 Days Past Due | | | Greater Than 90 Days Past Due | | | Total Loans | | | Nonaccrual | | ||||||||||||||||||
December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | | $ | 4,410,565 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 4,410,565 | | | | | $ | — | | |
Residential | | | | | 83,942,478 | | | | | | — | | | | | | — | | | | | | — | | | | | | 83,942,478 | | | | | | — | | |
Commercial | | | | | 120,733,002 | | | | | | — | | | | | | — | | | | | | 1,926,136 | | | | | | 122,659,138 | | | | | | 2,154,987 | | |
Commercial | | | | | 658,608 | | | | | | — | | | | | | — | | | | | | — | | | | | | 658,608 | | | | | | — | | |
Consumer | | | | | 500,373 | | | | | | — | | | | | | — | | | | | | — | | | | | | 500,373 | | | | | | — | | |
Total | | | | $ | 210,245,026 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,926,136 | | | | | $ | 212,171,162 | | | | | $ | 2,154,987 | | |
|
| | | 2019 | | | 2018 | | ||||||||||||||||||||||||||||||
| | | Residential Real Estate | | | Consumer, Other | | | Total | | | Residential Real Estate | | | Consumer, Other | | | Total | | ||||||||||||||||||
Performing | | | | $ | 7,402,234 | | | | | $ | 225,778 | | | | | $ | 7,628,012 | | | | | $ | 7,143,954 | | | | | $ | 1,523,236 | | | | | $ | 8,667,190 | | |
Nonperforming | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 7,402,234 | | | | | $ | 225,778 | | | | | $ | 7,628,012 | | | | | $ | 7,143,954 | | | | | $ | 1,523,236 | | | | | $ | 8,667,190 | | |
| | | 2019 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | 90 Days or Greater Past Due | | | Total Past Due | | | Nonaccrual | | | Current | | | Total Loans Receivable | | | 90 Days or Greater Past Due and Still Accruing | | ||||||||||||||||||||||||
Commercial and industrial | | | | $ | 445,306 | | | | | $ | — | | | | | $ | — | | | | | $ | 445,306 | | | | | $ | 1,192,670 | | | | | $ | 51,460,414 | | | | | $ | 53,098,390 | | | | | $ | — | | |
Commercial real estate | | | | | 132,231 | | | | | | — | | | | | | — | | | | | | 132,231 | | | | | | 1,408,250 | | | | | | 359,658,675 | | | | | | 361,199,156 | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,402,234 | | | | | | 7,402,234 | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 225,778 | | | | | | 225,778 | | | | | | — | | |
Total | | | | $ | 577,537 | | | | | $ | — | | | | | $ | — | | | | | $ | 577,537 | | | | | $ | 2,600,920 | | | | | $ | 418,747,101 | | | | | $ | 421,925,558 | | | | | $ | — | | |
|
| | | 2018 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | 90 Days or Greater Past Due | | | Total Past Due | | | Nonaccrual | | | Current | | | Total Loans Receivable | | | 90 Days or Greater Past Due and Still Accruing | | ||||||||||||||||||||||||
Commercial and industrial | | | | $ | 160,475 | | | | | $ | 40,726 | | | | | $ | — | | | | | $ | 201,201 | | | | | $ | 2,042,359 | | | | | $ | 58,458,747 | | | | | $ | 60,702,307 | | | | | $ | — | | |
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,359,038 | | | | | | 327,671,263 | | | | | | 331,030,301 | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,143,954 | | | | | | 7,143,954 | | | | | | — | | |
Consumer, other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,523,236 | | | | | | 1,523,236 | | | | | | — | | |
Total | | | | $ | 160,475 | | | | | $ | 40,726 | | | | | $ | — | | | | | $ | 201,201 | | | | | $ | 5,401,397 | | | | | $ | 394,797,200 | | | | | $ | 400,399,798 | | | | | $ | — | | |
|
| | | 2019 | | |||||||||||||||
| | | Number of Loans | | | Pre-Modification Outstanding Recorded Investment | | | Post-Modification Outstanding Recorded Investment | | |||||||||
Commerical and industrial | | | | | 5 | | | | | $ | 469,718 | | | | | $ | 469,718 | | |
Commercial real estate | | | | | 1 | | | | | | 52,500 | | | | | | 52,500 | | |
| | | 2018 | | |||||||||||||||
| | | Number of Loans | | | Pre-Modification Outstanding Recorded Investment | | | Post-Modification Outstanding Recorded Investment | | |||||||||
Commerical and industrial | | | | | 9 | | | | | $ | 1,315,209 | | | | | $ | 1,315,209 | | |
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | |
| | | 2017 | | |||||||||||||||||||||||||||
| | | Recorded Investment | | | Unpaid Principal Balance | | | Related Allowance | | | Average Recorded Investment | | | Interest Income Recognized | | |||||||||||||||
With no specific allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | $ | 1,026,328 | | | | | $ | 1,026,328 | | | | | $ | | | | | $ | 1,039,751 | | | | | $ | 54,763 | | | |
Commercial | | | | | 2,342,847 | | | | | | 3,046,352 | | | | | | — | | | | | | 2,680,445 | | | | | | 171,464 | | |
Commercial | | | | | 9,494 | | | | | | 9,494 | | | | | | — | | | | | | 9,527 | | | | | | 390 | | |
Subtotal | | | | | 3,378,669 | | | | | | 4,082,174 | | | | | | — | | | | | | 3,729,723 | | | | | | 226,617 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Subtotal | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | | 1,026,328 | | | | | | 1,026,328 | | | | | | | | | | | | 1,039,751 | | | | | | 54,763 | | |
Commercial | | | | | 2,342,847 | | | | | | 3,046,352 | | | | | | — | | | | | | 2,680,445 | | | | | | 171,464 | | |
Commercial | | | | | 9,494 | | | | | | 9,494 | | | | | | — | | | | | | 9,527 | | | | | | 390 | | |
Total | | | | $ | 3,378,669 | | | | | $ | 4,082,174 | | | | | $ | — | | | | | $ | 3,729,723 | | | | | $ | 226,617 | | |
|
| | | 2016 | | |||||||||||||||||||||||||||
| | | Recorded Investment | | | Unpaid Principal Balance | | | Related Allowance | | | Average Recorded Investment | | | Interest Income Recognized | | |||||||||||||||
With no specific allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | $ | 1,053,052 | | | | | $ | 1,053,052 | | | | | $ | — | | | | | $ | 1,286,710 | | | | | $ | 93,881 | | |
Commercial | | | | | 4,135,471 | | | | | | 4,545,741 | | | | | | — | | | | | | 5,914,256 | | | | | | 112,432 | | |
Commercial | | | | | 9,529 | | | | | | 9,529 | | | | | | — | | | | | | 19,638 | | | | | | 461 | | |
Subtotal | | | | | 5,198,052 | | | | | | 5,608,322 | | | | | | — | | | | | | 7,220,604 | | | | | | 206,774 | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Subtotal | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | | 1,053,052 | | | | | | 1,053,052 | | | | | | — | | | | | | 1,286,710 | | | | | | 93,881 | | |
Commercial | | | | | 4,135,471 | | | | | | 4,545,741 | | | | | | — | | | | | | 5,914,256 | | | | | | 112,432 | | |
Commercial | | | | | 9,529 | | | | | | 9,529 | | | | | | — | | | | | | 19,638 | | | | | | 461 | | |
Total | | | | $ | 5,198,052 | | | | | $ | 5,608,322 | | | | | $ | — | | | | | $ | 7,220,604 | | | | | $ | 206,774 | | |
|
| | | 2019 | | | 2018 | | ||||||
Beginning balance | | | | $ | 91,593 | | | | | $ | 492,750 | | |
Loans transferred to other real estate owned | | | | | 1,550,950 | | | | | | 147,994 | | |
Write-down of other real estate owned | | | | | (76,380) | | | | | | (11,907) | | |
Sale of other real estate owned | | | | | (243,383) | | | | | | (537,244) | | |
Total | | | | $ | 1,322,780 | | | | | $ | 91,593 | | |
| | | 2017 | | | 2016 | | ||||||
Land | | | | $ | 1,146,061 | | | | | $ | 1,146,061 | | |
Building | | | | | 1,315,488 | | | | | | 1,315,488 | | |
Furniture and equipment | | | | | 1,280,374 | | | | | | 1,232,594 | | |
Leasehold improvements | | | | | 305,688 | | | | | | 302,813 | | |
| | | | | 4,047,611 | | | | | | 3,996,956 | | |
Less accumulated depreciation | | | | | 1,526,558 | | | | | | 1,372,279 | | |
Total | | | | $ | 2,521,053 | | | | | $ | 2,624,677 | | |
|
| | | 2019 | | | 2018 | | ||||||
Net realized losses and write-downs on sales of other real estate owned (included in other noninterest income) | | | | $ | 76,380 | | | | | $ | 3,782 | | |
Expenses from operations and write-downs (included in noninterest expenses) | | | | $ | 28,433 | | | | | $ | 43,378 | | |
| | | 2017 | | | 2016 | | ||||||
| | | Amount | | | Amount | | ||||||
Noninterest-bearing demand | | | | $ | 25,054,268 | | | | | $ | 22,300,110 | | |
Statement savings | | | | | 11,222,991 | | | | | | 12,814,872 | | |
Interest-bearing demand | | | | | 8,240,083 | | | | | | 9,227,606 | | |
Money market deposit accounts | | | | | 32,174,984 | | | | | | 29,421,142 | | |
Time certificates of deposit | | | | | 132,200,963 | | | | | | 118,200,836 | | |
| | | | $ | 208,893,289 | | | | | $ | 191,964,566 | | |
|
| Within one year | | | $ | 68,365,918 | | | | 2019 | | 2018 | | |||||||||
Land | | | $ | 445,000 | | | | $ | 445,000 | | | ||||||||||
Buildings | | | | 2,329,254 | | | | | 2,320,542 | | | ||||||||||
Building and leasehold improvements | | | | 828,336 | | | | | 810,349 | | | ||||||||||
Furniture, fixtures, and equipment | | | | 2,300,291 | | | | | 2,179,342 | | | ||||||||||
Data processing software | | | | 591,644 | | | | | 524,640 | | | ||||||||||
Construction in process | | | | 25,048 | | | | | — | | | ||||||||||
| Beyond one year but within two years | | | | 50,593,786 | | | | | | 6,519,573 | | | | | 6,279,873 | | | |||
| Beyond two years but within three years | | | | 9,170,008 | | | ||||||||||||||
| Beyond three years but within four years | | | | 3,618,507 | | | ||||||||||||||
| Beyond four years but within five years | | | | 452,744 | | | ||||||||||||||
| Total | | | $ | 132,200,963 | | | ||||||||||||||
| |||||||||||||||||||||
Less accumulated depreciation | | | | (3,058,936) | | | | | (2,764,951) | | | ||||||||||
Total | | | $ | 3,460,637 | | | | $ | 3,514,922 | | |
| | | 2019 | | | 2018 | | ||||||
Demand, noninterest-bearing | | | | $ | 77,018,905 | | | | | $ | 70,668,584 | | |
Demand, interest-bearing | | | | | 56,404,178 | | | | | | 56,363,707 | | |
Money market accounts | | | | | 132,609,554 | | | | | | 120,444,997 | | |
Savings | | | | | 5,699,681 | | | | | | 3,640,105 | | |
Time, $100,000 and over | | | | | 90,300,925 | | | | | | 101,227,494 | | |
Time, other | | | | | 31,411,590 | | | | | | 9,573,757 | | |
| | | | $ | 393,444,833 | | | | | $ | 361,918,644 | | |
Year Ending | | | Amount | | |||
2020 | | | | $ | 63,057,820 | | |
2021 | | | | | 47,944,622 | | |
2022 | | | | | 7,676,575 | | |
2023 | | | | | 3,011,993 | | |
2024 | | | | | 21,505 | | |
| | | | $ | 121,712,515 | | |
| | | 2017 | | | 2016 | | ||||||
Balance at year-end | | | | $ | 13,500,000 | | | | | $ | 5,000,000 | | |
Average balance outstanding during the year | | | | | 10,306,479 | | | | | | 283,809 | | |
Maximum month-end balance | | | | | 21,295,800 | | | | | | 5,000,000 | | |
Weighted-average interest rate: | | | | | | | | | | | | | |
As of year-end | | | | | 1.54% | | | | | | 0.92% | | |
Paid during the year | | | | | 0.70% | | | | | | 0.69% | | |
| | | Maturity Range | | | Weighted- Average Rate | | | Stated Interest Rate Range | | | | | | | | | | | | | | |||||||||||||||||||||
Description | | | From | | | To | | | From | | | To | | | 2017 | | | 2016 | | ||||||||||||||||||||||||
Fixed rate | | | | | 1/8/2018 | | | | | | 7/29/2019 | | | | | | 1.13% | | | | | | 0.87% | | | | | | 1.83% | | | | | $ | 18,343,859 | | | | | $ | 28,189,359 | | |
Mid term | | | | | 5/17/2018 | | | | | | 1/27/2020 | | | | | | 1.21% | | | | | | 0.90% | | | | | | 1.52% | | | | | | 48,648,300 | | | | | | 33,673,550 | | |
Total | | | | $ | 66,992,159 | | | | | $ | 61,862,909 | | | ||||||||||||||||||||||||||||||
|
| | | Maturity Range | | | Weighted- Average Interest Rate | | | Stated Interest Rate Range | | | At December 31, | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Description | | | From | | | To | | | From | | | To | | | 2019 | | | 2018 | | | | | | | ||||||||||||||||||||||||||||||||||
Fixed rate | | | | | 01/14/20 | | | | | | 08/29/24 | | | | | | 2.05 | | | | | | 1.50% | | | | | | 2.72% | | | | | $ | 45,000,000 | | | | | $ | 43,000,000 | | | | | | | | ||||||||||
Mid Term | | | | | 04/20/20 | | | | | | 06/21/21 | | | | | | 2.05% | | | | | | 1.53% | | | | | | 2.48% | | | | | | 16,000,000 | | | | | | 17,500,000 | | | | | | | | ||||||||||
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 61,000,000 | | | | | $ | 60,500,000 | | | | | | | | | | | | | | | | | |
| | | 2017 | | |||||||||
Year Ending December 31, | | | Amount | | | Weighted- Average Rate | | ||||||
2018 | | | | $ | 37,803,659 | | | | | | 1.10% | | |
2019 | | | | | 23,462,250 | | | | | | 1.25% | | |
2020 | | | | | 5,726,250 | | | | | | 1.52% | | |
Total | | | | $ | 66,992,159 | | | | | �� | 1.29% | | |
|
| | | Weighted- Average Rate | | | Amount | | ||||||
Due within one year | | | | | 1.76% | | | | | $ | 14,000,000 | | |
Due within two years | | | | | 2.05% | | | | | | 24,000,000 | | |
Due within three years | | | | | 2.33% | | | | | | 13,000,000 | | |
Due within four years | | | | | 2.72% | | | | | | 5,000,000 | | |
Due within five years | | | | | 1.51% | | | | | | 5,000,000 | | |
Total | | | | | 2.05% | | | | | $ | 61,000,000 | | |
| | | 2017 | | | 2016 | | ||||||
Current payable | | | | $ | 662,242 | | | | | $ | 342,267 | | |
Deferred taxes | | | | | (112,525) | | | | | | 41,359 | | |
Change in effective corporate tax rate | | | | | 120,721 | | | | | | — | | |
Total | | | | $ | 670,438 | | | | | $ | 383,626 | | |
|
| | | 2017 | | | 2016 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Allowance for loan losses | | | | $ | 413,980 | | | | | $ | 571,654 | | |
Startup and organizational costs | | | | | 47,164 | | | | | | 91,141 | | |
Nonaccrued interest | | | | | 102,718 | | | | | | 139,492 | | |
Other | | | | | 6,591 | | | | | | 10,671 | | |
Total gross deferred tax assets | | | | | 570,453 | | | | | | 812,958 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Premises and equipment | | | | | 57,705 | | | | | | 116,030 | | |
Unrealized gain on securities | | | | | 209,604 | | | | | | 209,429 | | |
Deferred costs | | | | | 108,133 | | | | | | 154,362 | | |
Total gross deferred tax liabilities | | | | | 375,442 | | | | | | 479,821 | | |
Net deferred tax assets | | | | $ | 195,011 | | | | | $ | 333,137 | | |
|
| | | 2017 | | | 2016 | | ||||||||||||||||||
| | | Amount | | | % of Pretax Income | | | Amount | | | % of Pretax Income | | ||||||||||||
Provision at statutory rate | | | | $ | 799,958 | | | | | | 34.0% | | | | | $ | 642,228 | | | | | | 34.0% | | |
Effect of tax-exempt (loss) | | | | | (249,384) | | | | | | (10.6) | | | | | | (280,221) | | | | | | (14.9) | | |
Change in effective corporate tax rate | | | | | 120,721 | | | | | | 5.1 | | | | | | — | | | | | | — | | |
Other, net | | | | | (857) | | | | | | — | | | | | | 21,619 | | | | | | 1.2 | | |
Actual tax expense and effective rate | | | | $ | 670,438 | | | | | | 28.5% | | | | | $ | 383,626 | | | | | | 20.3% | | |
|
| | | 2017 | | | Weighted- Average Exercise Price | | | Weighted- Average Remaining Contractual Term (in Years) | | | Aggregate Intrinsic Value | | ||||||||||||
Outstanding, beginning | | | | | 131,700 | | | | | $ | 11.31 | | | | | | 3.11 | | | | | $ | 757,062 | | |
Granted | | | | | 4,180 | | | | | | 17.60 | | | | | | 9.00 | | | | | | — | | |
Exercised | | | | | 30,000 | | | | | | 10.00 | | | | | | — | | | | | | — | | |
Forfeited | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Outstanding, ending | | | | | 105,880 | | | | | $ | 11.93 | | | | | | 2.90 | | | | | $ | 600,074 | | |
Exercisable at year-end | | | | | 101,680 | | | | | $ | 11.75 | | | | | | 2.71 | | | | | $ | 593,912 | | |
|
| | | Outstanding | | | Exercisable | | ||||||||||||||||||||||||
Exercise Price | | | Shares | | | Average Life | | | Average Exercise Price | | | Shares | | | Average Exercise Price | | |||||||||||||||
$10.00 | | | | | 72,500 | | | | | | 0.29 | | | | | $ | 10.00 | | | | | | 42,500 | | | | | $ | 10.00 | | |
$11.00 | | | | | 5,000 | | | | | | 1.58 | | | | | $ | 11.00 | | | | | | 5,000 | | | | | $ | 11.00 | | |
$11.12 | | | | | 6,000 | | | | | | 2.73 | | | | | $ | 11.12 | | | | | | 6,000 | | | | | $ | 11.12 | | |
$11.50 | | | | | 15,500 | | | | | | 3.00 | | | | | $ | 11.50 | | | | | | 15,500 | | | | | $ | 11.50 | | |
$12.00 | | | | | 12,910 | | | | | | 4.00 | | | | | $ | 12.00 | | | | | | 12,910 | | | | | $ | 12.00 | | |
$14.20 | | | | | 7,470 | | | | | | 5.41 | | | | | $ | 14.20 | | | | | | 6,470 | | | | | $ | 14.20 | | |
$14.63 | | | | | 2,635 | | | | | | 6.00 | | | | | $ | 14.63 | | | | | | 2,635 | | | | | $ | 14.63 | | |
$17.11 | | | | | 2,110 | | | | | | 7.00 | | | | | $ | 17.11 | | | | | | 2,110 | | | | | $ | 17.11 | | |
$17.06 | | | | | 7,575 | | | | | | 8.25 | | | | | $ | 17.06 | | | | | | 4,375 | | | | | $ | 17.06 | | |
$17.60 | | | | | 4,180 | | | | | | 9.00 | | | | | $ | 17.60 | | | | | | 4,180 | | | | | $ | 17.60 | | |
| | Number of Restricted Stock | | Weighted- Average Grant Date Fair Value | | | Number of Options | | Weighted- Average Exercise Price | | Aggregate Intrinsic Value | | ||||||||||||||||||||
Nonvested at December 31, 2016 | | | | 2,337 | | | | $ | 17.11 | | | |||||||||||||||||||||
Outstanding, January 1, 2019 | | | | 346,034 | | | | $ | 8.40 | | | | | | | | ||||||||||||||||
Granted | | | | — | | | | | — | | | | | | 92,648 | | | | | 8.94 | | | | | | | | |||||
Excercised | | | | (167) | | | | | 8.25 | | | | | | | | ||||||||||||||||
Forfeited | | | | — | | | | | — | | | | | | (7,500) | | | | | — | | | | | | | | |||||
Vested | | | | 585 | | | | | 17.11 | | | |||||||||||||||||||||
Outstanding, ending | | | | 1,752 | | | | $ | 17.11 | | | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Outstanding, December 31, 2019 | | | | 431,015 | | | | $ | 8.51 | | | | $ | 3,443,810 | | | ||||||||||||||||
Exercisable at year-end | | | | 272,783 | | | | $ | 8.44 | | | | $ | 2,198,631 | | |
| | | 2019 | | | 2018 | | ||||||
Current | | | | $ | 928,000 | | | | | $ | 4,000 | | |
Deferred | | | | | (67,000) | | | | | | 562,000 | | |
Total provision for income taxes | | | | $ | 861,000 | | | | | $ | 566,000 | | |
| | | 2019 | | | 2018 | | ||||||||||||||||||
| | | Amount | | | % of Pretax Income | | | Amount | | | % of Pretax Income | | ||||||||||||
Federal income tax at statutory rate | | | | $ | 929,000 | | | | | | 21.0% | | | | | $ | 571,000 | | | | | | 21.0% | | |
Tax exempt interest | | | | | (37,000) | | | | | | (0.8) | | | | | | (32,000) | | | | | | (1.2) | | |
Bank-owned life insurance | | | | | (55,000) | | | | | | (1.2) | | | | | | (57,000) | | | | | | (2.1) | | |
Merger expenses | | | | | 16,000 | | | | | | 0.4 | | | | | | — | | | | | | — | | |
State taxes | | | | | 15,000 | | | | | | 0.3 | | | | | | 20,000 | | | | | | 0.7 | | |
Other | | | | | (7,000) | | | | | | (0.2) | | | | | | 64,000 | | | | | | 2.4 | | |
Total provision and effective rate | | | | $ | 861,000 | | | | | | 19.5% | | | | | $ | 566,000 | | | | | | 20.8% | | |
| | | 2019 | | | 2018 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Allowance for loan losses | | | | $ | 157,370 | | | | | $ | 303,510 | | |
Stock compensation warrants and options | | | | | 141,550 | | | | | | 83,648 | | |
Organization and start-up costs | | | | | 33,712 | | | | | | 47,551 | | |
Accrued expenses | | | | | 180,600 | | | | | | 60,865 | | |
Partnership income | | | | | 614 | | | | | | 640 | | |
OREO expense | | | | | 16,039 | | | | | | 27,011 | | |
Unrealized loss on available-for-sale securities | | | | | — | | | | | | 20,032 | ��� | |
State net operating loss carryforward | | | | | — | | | | | | 3,163 | | |
Accrued legal expenses | | | | | 21,000 | | | | | | — | | |
Operating lease liability | | | | | 805 | | | | | | — | | |
Total deferred tax assets | | | | | 551,690 | | | | | | 546,420 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Depreciation on premises and equipment | | | | | (85,898) | | | | | | (90,885) | | |
Unrealized gain on available-for-sale securities | | | | | (20,570) | | | | | | — | | |
Deferred loan costs | | | | | (29,549) | | | | | | (33,007) | | |
Accretion | | | | | (654) | | | | | | (682) | | |
Servicing asset | | | | | (27,036) | | | | | | (35,340) | | |
Prepaids | | | | | (38,797) | | | | | | (63,275) | | |
Total deferred tax liabilities | | | | | (202,504) | | | | | | (223,189) | | |
Net deferred tax assets | | | | $ | 349,186 | | | | | $ | 323,231 | | |
| | | 2019 | | |||||||||||||||||||||
| | | Asset Derivatives | | | Liability Derivatives | | ||||||||||||||||||
| | | Notional Amount | | | Fair Value(1) | | | Notional Amount | | | Fair Value(2) | | ||||||||||||
Interest rate swap agreements | | | | $ | 58,524,041 | | | | | $ | 2,315,380 | | | | | $ | 58,524,041 | | | | | $ | 2,315,380 | | |
| | | | $ | 58,524,041 | | | | | $ | 2,315,380 | | | | | $ | 58,524,041 | | | | | $ | 2,315,380 | | |
|
| | | 2018 | | |||||||||||||||||||||
| | | Asset Derivatives | | | Liability Derivatives | | ||||||||||||||||||
| | | Notional Amount | | | Fair Value(1) | | | Notional Amount | | | Fair Value(2) | | ||||||||||||
Interest rate swap agreements | | | | $ | 44,481,000 | | | | | $ | 486,786 | | | | | $ | 47,149,000 | | | | | $ | 486,786 | | |
| | | | $ | 44,481,000 | | | | | $ | 486,786 | | | | | $ | 47,149,000 | | | | | $ | 486,786 | | |
| | | 2019 | | | 2018 | | ||||||
Unfunded commitments under lines of credit | | | | $ | 61,006,674 | | | | | $ | 67,763,978 | | |
Commitments to grant loans | | | | | 6,103,750 | | | | | | 6,259,750 | | |
Standby letters of credit | | | | | 1,110,473 | | | | | | 2,842,657 | | |
Total | | | | $ | 68,220,897 | | | | | $ | 76,866,385 | | |
| | | 2017 | | | 2016 | | ||||||
Unfunded commitments under lines of credit | | | | $ | 15,883,245 | | | | | $ | 17,506,888 | | |
|
| 2018 | | | | $ | 88,725 | | |
| 2019 | | | | | 55,323 | | |
| 2020 | | | | | 13,932 | | |
| Total | | | | $ | 157,980 | | |
|
| | | 2019 | | | 2018 | | ||||||||||||||||||
| | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||
Common equity Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 53,099,000 | | | | | | 12.50% | | | | | $ | 48,231,000 | | | | | | 11.95% | | |
For capital adequacy purposes | | | | | 19,122,000 | | | | | | 4.50 | | | | | | 18,163,000 | | | | | | 4.50 | | |
To be well capitalized | | | | | 27,620,000 | | | | | | 6.50 | | | | | | 26,236,000 | | | | | | 6.50 | | |
Total capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 57,128,000 | | | | | | 13.44% | | | | | $ | 52,866,000 | | | | | | 13.10% | | |
For capital adequacy purposes | | | | | 33,994,000 | | | | | | 8.00 | | | | | | 32,290,000 | | | | | | 8.00 | | |
To be well capitalized | | | | | 42,493,000 | | | | | | 10.00 | | | | | | 40,363,000 | | | | | | 10.00 | | |
Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 53,099,000 | | | | | | 12.50% | | | | | $ | 48,231,000 | | | | | | 11.95% | | |
For capital adequacy purposes | | | | | 25,496,000 | | | | | | 6.00 | | | | | | 24,218,000 | | | | | | 6.00 | | |
To be well capitalized | | | | | 33,994,000 | | | | | | 8.00 | | | | | | 32,290,000 | | | | | | 8.00 | | |
Tier 1 capital (to average assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 53,099,000 | | | | | | 10.33% | | | | | $ | 48,231,000 | | | | | | 10.06% | | |
For capital adequacy purposes | | | | | 20,569,000 | | | | | | 4.00 | | | | | | 19,169,000 | | | | | | 4.00 | | |
To be well capitalized | | | | | 25,712,000 | | | | | | 5.00 | | | | | | 23,962,000 | | | | | | 5.00 | | |
| | | 2017 | | | 2016 | | ||||||||||||||||||
| | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||
Total capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 37,193,000 | | | | | | 15.67% | | | | | $ | 31,574,993 | | | | | | 15.03% | | |
For capital adequacy purposes | | | | | 18,986,800 | | | | | | 8.00 | | | | | | 16,800,880 | | | | | | 8.00 | | |
To be well capitalized | | | | | 23,733,500 | | | | | | 10.00 | | | | | | 21,001,100 | | | | | | 10.00 | | |
Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 29,228,000 | | | | | | 12.32% | | | | | $ | 23,944,993 | | | | | | 11.40% | | |
For capital adequacy purposes | | | | | 14,240,100 | | | | | | 6.00 | | | | | | 12,600,660 | | | | | | 6.00 | | |
To be well capitalized | | | | | 18,986,800 | | | | | | 8.00 | | | | | | 16,800,880 | | | | | | 8.00 | | |
Tier 1 capital (to average assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 29,228,000 | | | | | | 9.05% | | | | | $ | 23,944,993 | | | | | | 8.37% | | |
For capital adequacy purposes | | | | | 12,920,080 | | | | | | 4.00 | | | | | | 11,440,160 | | | | | | 4.00 | | |
To be well capitalized | | | | | 16,150,100 | | | | | | 5.00 | | | | | | 14,300,200 | | | | | | 5.00 | | |
Common equity Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | | | $ | 29,228,000 | | | | | | 12.32% | | | | | $ | 20,974,993 | | | | | | 9.99% | | |
For capital adequacy purposes | | | | | 10,680,075 | | | | | | 4.50 | | | | | | 9,450,495 | | | | | | 4.50 | | |
To be well capitalized | | | | | 15,426,775 | | | | | | 6.50 | | | | | | 13,650,715 | | | | | | 6.50 | | |
| Level I | | | — | | | Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level I assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. | |
| Level II | | | — | | | Valuation is based on inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | |
| Level III | | | — | | | Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level III assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. | |
| | | 2019 | | |||||||||||||||||||||
| | | Level I | | | Level II | | | Level III | | | Total | | ||||||||||||
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. treasury bills | | | | $ | 10,000,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 10,000,000 | | |
Mortgage-backed securities – residential | | | | | — | | | | | | 3,856,486 | | | | | | — | | | | | | 3,856,486 | | |
Corporate debt securities | | | | | — | | | | | | 2,039,968 | | | | | | — | | | | | | 2,039,968 | | |
State and municipal securities | | | | | — | | | | | | 3,161,989 | | | | | | — | | | | | | 3,161,989 | | |
Asset-backed securities – SBA | | | | | — | | | | | | 2,780,390 | | | | | | — | | | | | | 2,780,390 | | |
| | | | $ | 10,000,000 | | | | | $ | 11,838,833 | | | | | $ | — | | | | | $ | 21,838,833 | | |
Servicing asset | | | | $ | — | | | | | $ | — | | | | | $ | 128,743 | | | | | $ | 128,743 | | |
Interest rate swap agreements, assets | | | | $ | — | | | | | $ | 2,315,380 | | | | | $ | — | | | | | $ | (2,315,380) | | |
Interest rate swap agreements, liabilities | | | | $ | — | | | | | $ | 2,315,380 | | | | | $ | — | | | | | $ | (2,315,380) | | |
|
| | | 2018 | | |||||||||||||||||||||
| | | Level I | | | Level II | | | Level III | | | Total | | ||||||||||||
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. treasury bills | | | | $ | 10,000,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 10,000,000 | | |
Mortgage-backed securities – residential | | | | | — | | | | | | 5,234,316 | | | | | | — | | | | | | 5,234,316 | | |
Corporate debt securities | | | | | — | | | | | | 2,037,469 | | | | | | — | | | | | | 2,037,469 | | |
State and municipal securities | | | | | — | | | | | | 2,521,126 | | | | | | — | | | | | | 2,521,126 | | |
Asset-backed securities – SBA | | | | | — | | | | | | 2,196,857 | | | | | | — | | | | | | 2,196,857 | | |
| | | | $ | 10,000,000 | | | | | $ | 11,989,768 | | | | | $ | — | | | | | $ | 21,989,768 | | |
Servicing asset | | | | $ | — | | | | | $ | — | | | | | $ | 161,423 | | | | | $ | 161,423 | | |
Interest rate swap agreements, assets | | | | $ | — | | | | | $ | 486,786 | | | | | $ | — | | | | | $ | 486,786 | | |
Interest rate swap agreements, liabilities | | | | $ | — | | | | | $ | 486,786 | | | | | $ | — | | | | | $ | 486,786 | | |
| | | 2019 | | | 2018 | | ||||||
Beginning balance, January 1 | | | | $ | 161,423 | | | | | $ | 272,906 | | |
Change in fair value | | | | | (32,680) | | | | | | (111,483) | | |
Ending balance, December 31 | | | | $ | 128,743 | | | | | $ | 161,423 | | |
| | | 2019 | | |||||||||||||||||||||
| | | Level I | | | Level II | | | Level III | | | Total | | ||||||||||||
Impaired loans, net | | | | $ | — | | | | | $ | — | | | | | $ | 97,573 | | | | | $ | 97,573 | | |
Other real estate owned | | | | $ | — | | | | | $ | — | | | | | $ | 1,322,780 | | | | | $ | 1,322,780 | | |
|
| | | 2018 | | |||||||||||||||||||||
| | | Level I | | | Level II | | | Level III | | | Total | | ||||||||||||
Impaired loans, net | | | | $ | — | | | | | $ | — | | | | | $ | 105,412 | | | | | $ | 105,412 | | |
Other real estate owned | | | | $ | — | | | | | $ | — | | | | | $ | 91,593 | | | | | $ | 91,593 | | |
| | | December 31, 2017 | | |||||||||||||||||||||
| | | Level I | | | Level II | | | Level III | | | Total | | ||||||||||||
Assets measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of states and political subdivisions | | | | $ | — | | | | | $ | 32,966,786 | | | | | $ | — | | | | | $ | 32,966,786 | | |
Corporate securities | | | | | — | | | | | | 24,322,283 | | | | | | — | | | | | | 24,322,283 | | |
Mortgage-backed securities – government-sponsored entities | | | | | — | | | | | | 5,972,973 | | | | | | — | | | | | | 5,972,973 | | |
Asset-backed securities | | | | | — | | | | | | 8,297,947 | | | | | | — | | | | | | 8,297,947 | | |
| | | December 31, 2016 | | |||||||||||||||||||||
| | | Level I | | | Level II | | | Level III | | | Total | | ||||||||||||
Assets measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of states and political subdivisions | | | | $ | — | | | | | $ | 36,383,095 | | | | | $ | — | | | | | $ | 36,383,095 | | |
Corporate securities | | | | | — | | | | | | 13,708,537 | | | | | | — | | | | | | 13,708,537 | | |
Mortgage-backed securities – government-sponsored entities | | | | | — | | | | | | 7,092,260 | | | | | | — | | | | | | 7,092,260 | | |
Asset-backed securities | | | | | — | | | | | | 8,881,439 | | | | | | — | | | | | | 8,881,439 | | |
| | | 2019 | | ||||||||||||
| | | Quantitative Information About Level III Fair Value Measurements | | ||||||||||||
| | | Fair Value Estimate | | | Valuation Techniques | | | Unobservable Input | | | Range (Weighted Average) | | |||
Servicing asset | | | | $ | 128,743 | | | | Discounted cash flow | | | Discount rate | | | 11.15% to 21.62% | |
| | | | | | | | | | Prepayment rate Life | | | 9.96% to 26.65% 0 to 5 years | | ||
Other real estate owned | | | | $ | 1,322,780 | | | | Signed sales agreement or appraisal of collateral | | | Liquidation expenses | | | 8.00% | |
| | | 2018 | | ||||||||||||
| | | Quantitative Information About Level III Fair Value Measurements | | ||||||||||||
| | | Fair Value Estimate | | | Valuation Techniques | | | Unobservable Input | | | Range (Weighted Average) | | |||
Servicing asset | | | | $ | 161,423 | | | | Discounted cash flow | | | Discount rate | | | 13.56% to 25.80% | |
| | | | | | | | | | Prepayment rate Life | | | 8.06% to 21.70% 0 to 6 years | | ||
Impaired loans | | | | $ | 105,412 | | | | Signed sales agreement or appraisal of collateral | | | Appraisal adjustments | | | 20.00% | |
| | | | | | | | | | Liquidation expenses | | | 8.00% | | ||
Other real estate owned | | | | $ | 91,583 | | | | Signed sales agreement or appraisal of collateral | | | Liquidation expenses | | | 8.00% | |
| | | 2017 | | | Fair Value Measurements at December 31, 2017 | | ||||||||||||||||||||||||
| | | Carrying Value | | | Fair Value | | | Level I | | | Level II | | | Level III | | |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 2,413,415 | | | | | $ | 2,413,415 | | | | | $ | 2,413,415 | | | | | $ | — | | | | | $ | — | | |
Investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale | | | | | 71,559,989 | | | | | | 71,559,989 | | | | | | — | | | | | | 71,559,989 | | | | | | — | | |
Held to maturity | | | | | 1,250,000 | | | | | | 1,246,880 | | | | | | — | | | | | | 1,246,880 | | | | | | — | | |
Loans receivable, net | | | | | 238,928,875 | | | | | | 238,565,875 | | | | | | — | | | | | | — | | | | | | 238,565,875 | | |
Regulatory stock | | | | | 5,105,300 | | | | | | 5,105,300 | | | | | | 5,105,300 | | | | | | — | | | | | | — | | |
Accrued interest receivable | | | | | 1,479,378 | | | | | | 1,479,378 | | | | | | 1,479,378 | | | | | | — | | | | | | — | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 208,893,289 | | | | | $ | 205,407,693 | | | | | $ | 73,763,730 | | | | | $ | — | | | | | $ | 131,643,963 | | |
Other borrowings | | | | | 66,992,159 | | | | | | 66,464,000 | | | | | | — | | | | | | — | | | | | | 66,464,000 | | |
Subordinated debt | | | | | 12,211,648 | | | | | | 12,597,374 | | | | | | — | | | | | | — | | | | | | 12,597,374 | | |
Short-term borrowings | | | | | 13,500,000 | | | | | | 13,500,000 | | | | | | 13,500,000 | | | | | | — | | | | | | — | | |
Accrued interest payable | | | | | 430,808 | ��� | | | | | 430,808 | | | | | | 430,808 | | | | | | — | | | | | | — | | |
| | | 2016 | | | Fair Value Measurements at December 31, 2016 | | ||||||||||||||||||||||||
| | | Carrying Value | | | Fair Value | | | Level I | | | Level II | | | Level III | | |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 2,629,461 | | | | | $ | 2,629,461 | | | | | $ | 2,629,461 | | | | | $ | — | | | | | $ | — | | |
Investment securities available for sale | | | | | 66,065,331 | | | | | | 66,065,331 | | | | | | — | | | | | | 66,065,331 | | | | | | — | | |
Loans held for sale | | | | | 343,986 | | | | | | 343,986 | | | | | | 343,986 | | | | | | — | | | | | | — | | |
Loans receivable, net | | | | | 209,686,829 | | | | | | 211,360,000 | | | | | | — | | | | | | — | | | | | | 211,360,000 | | |
Regulatory stock | | | | | 4,542,200 | | | | | | 4,542,200 | | | | | | 4,542,200 | | | | | | — | | | | | | — | | |
Accrued interest receivable | | | | | 1,288,243 | | | | | | 1,288,243 | | | | | | 1,288,243 | | | | | | — | | | | | | — | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 191,964,566 | | | | | $ | 192,174,730 | | | | | $ | 73,763,730 | | | | | $ | — | | | | | $ | 118,411,000 | | |
Other borrowings | | | | | 61,862,909 | | | | | | 61,497,000 | | | | | | — | | | | | | — | | | | | | 61,497,000 | | |
Subordinated debt | | | | | 5,329,524 | | | | | | 5,375,000 | | | | | | — | | | | | | — | | | | | | 5,375,000 | | |
Short-term borrowings | | | | | 5,000,000 | | | | | | 5,000,000 | | | | | | 5,000,000 | | | | | | — | | | | | | — | | |
Accrued interest payable | | | | | 251,831 | | | | | | 251,831 | | | | | | 251,831 | | | | | | — | | | | | | — | | |
| | | 2019 | | |||||||||||||||||||||||||||
| | | Carrying Value | | | Level I | | | Level II | | | Level III | | | Total Fair Value | | |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 38,981,975 | | | | | $ | 38,981,975 | | | | | $ | — | | | | | $ | — | | | | | $ | 38,981,975 | | |
Interest-bearing time deposits | | | | | 11,236,000 | | | | | | — | | | | | | 11,236,000 | | | | | | — | | | | | | 11,236,000 | | |
Securities available for sale | | | | | 21,838,833 | | | | | | 10,000,000 | | | | | | 11,838,833 | | | | | | — | | | | | | 21,838,833 | | |
Securities held to maturity | | | | | 1,000,000 | | | | | | 1,036,308 | | | | | | 1,036,308 | | | | | | | | | | | | | | |
Loans, net | | | | | 417,183,398 | | | | | | — | | | | | | — | | | | | | 412,269,000 | | | | | | 412,269,000 | | |
Investment in restricted stock | | | | | 2,871,800 | | | | | | — | | | | | | 2,871,800 | | | | | | — | | | | | | 2,871,800 | | |
Servicing asset | | | | | 128,743 | | | | | | — | | | | | | — | | | | | | 128,743 | | | | | | 128,743 | | |
Interest rate swap agreements | | | | | 2,315,380 | | | | | | — | | | | | | 2,315,380 | | | | | | — | | | | | | 2,315,380 | | |
Accrued interest receivable | | | | | 1,487,414 | | | | | | — | | | | | | 1,487,414 | | | | | | — | | | | | | 1,487,414 | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 393,444,833 | | | | | $ | 271,732,318 | | | | | $ | 122,248,000 | | | | | $ | — | | | | | $ | 393,980,318 | | |
Other borrowed funds | | | | | 3,000,000 | | | | | | — | | | | | | 3,000,000 | | | | | | — | | | | | | 3,000,000 | | |
Long-term debt | | | | | 61,000,000 | | | | | | — | | | | | | 61,698,000 | | | | | | — | | | | | | 61,698,000 | | |
Interest rate swap agreements | | | | | 2,315,380 | | | | | | — | | | | | | 2,315,380 | | | | | | — | | | | | | 2,315,380 | | |
Accrued interest payable | | | | | 550,771 | | | | | | — | | | | | | 550,771 | | | | | | — | | | | | | 550,771 | | |
| | | 2018 | | |||||||||||||||||||||||||||
| | | Carrying Value | | | Level I | | | Level II | | | Level III | | | Total Fair Value | | |||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 26,170,211 | | | | | $ | 26,170,211 | | | | | $ | — | | | | | $ | — | | | | | $ | 26,170,211 | | |
Interest-bearing time deposits | | | | | 13,974,000 | | | | | | — | | | | | | 13,974,000 | | | | | | — | | | | | | 13,974,000 | | |
Securities available for sale | | | | | 21,989,768 | | | | | | 10,000,000 | | | | | | 11,989,768 | | | | | | — | | | | | | 21,989,768 | | |
Securities held to maturity | | | | | 1,000,000 | | | | | | 994,485 | | | | | | 994,485 | | | | | | | | | | | | | | |
Loans, net | | | | | 394,889,629 | | | | | | — | | | | | | — | | | | | | 390,318,000 | | | | | | 390,318,000 | | |
Investment in restricted stock | | | | | 3,004,400 | | | | | | — | | | ��� | | | 3,004,400 | | | | | | — | | | | | | 3,004,400 | | |
Servicing asset | | | | | 161,423 | | | | | | — | | | | | | — | | | | | | 161,423 | | | | | | 161,423 | | |
Interest rate swap agreements | | | | | 486,786 | | | | | | — | | | | | | 486,786 | | | | | | — | | | | | | 486,786 | | |
Accrued interest receivable | | | | | 1,352,980 | | | | | | — | | | | | | 1,352,980 | | | | | | — | | | | | | 1,352,980 | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 361,918,644 | | | | | $ | — | | | | | $ | 335,300,000 | | | | | $ | — | | | | | $ | 335,300,000 | | |
Other borrowed funds | | | | | 6,000,000 | | | | | | — | | | | | | 6,000,000 | | | | | | — | | | | | | 6,000,000 | | |
Long-term debt | | | | | 60,500,000 | | | | | | — | | | | | | 58,971,000 | | | | | | — | | | | | | 58,971,000 | | |
Interest rate swap agreements | | | | | 486,786 | | | | | | — | | | | | | 486,786 | | | | | | — | | | | | | 486,786 | | |
Accrued interest payable | | | | | 550,495 | | | | | | — | | | | | | 550,495 | | | | | | — | | | | | | 550,495 | | |
Lease Right-of-use Assets | | | Classification | | | December 31, 2019 | | |||
Operating lease right-of-use assets | | | Other assets | | | | $ | 1,804,674 | | |
Total Lease Right-of-Use Assets | | | | | | | $ | 1,804,674 | | |
|
Lease Liabilities | | | Classification | | | December 31, 2019 | | |||
Operating lease liability | | | Other liabilities | | | | $ | 1,808,506 | | |
Total Lease Liabilities | | | | | | | $ | 1,808,506 | | |
|
| | | December 31, 2019 | |
Weighted-average remaining lease term | | | 11.66 years | |
Operating lease cost | | | | |
Weighted-average discount rate | | | 3.53% | |
Operating lease cost | | | | |
The components of the lease expense are as follows: | | | For the Year Ended December 31, 2019 | | |||
Operating lease cost | | | | $ | 210,497 | | |
Short-term lease cost | | | | | 2,471 | | |
| | | | $ | 212,968 | | |
Year Ended December 31: | | | Operating Leases | | |||
2020 | | | | $ | 216,878 | | |
2021 | | | | | 183,840 | | |
2022 | | | | | 181,606 | | |
2023 | | | | | 181,606 | | |
2024 | | | | | 181,606 | | |
2025 and thereafter | | | | | 1,271,245 | | |
Total Future Mimumm Lease Payments | | | | | 2,216,781 | | |
Amounts Representing Interest | | | | | (408,275) | | |
Present Value of Net Future Minimum Lease Payments | | | | $ | 1,808,506 | | |
| | | 2017 | | | 2016 | | ||||||
| | | Unrealized Gains (Losses) on Securities Available for Sale | | | Unrealized Gains (Losses) on Securities Available for Sale | | ||||||
Beginning balance | | | | $ | 406,538 | | | | | $ | 903,305 | | |
Other comprehensive income (loss) before reclassifications | | | | | 259,586 | | | | | | (395,348) | | |
Amounts reclassified from accumulated other comprehensive income | | | | | (7,367) | | | | | | (101,419) | | |
Reclassification of certain income tax effects from accumulated other comprehensive income | | | | | 129,754 | | | | | | — | | |
Period change | | | | | 381,973 | | | | | | (496,767) | | |
Ending balance | | | | $ | 788,511 | | | | | $ | 406,538 | | |
|
Details About Accumulated Other Comprehensive Income Components | | | Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended December 31, 2017(2) | | | Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended December 31, 2016(2) | | | Affected Line Item in the Consolidated Statement of Income | | ||||||
Securities available for sale(1): | | | | | ||||||||||||
Investment security gains, net | | | | $ | 11,162 | | | | | $ | 153,665 | | | | Investment securities gains, net | |
Income taxes | | | | | (3,795) | | | | | | (52,246) | | | | Income taxes | |
Total reclassifications for the period | | | | $ | 7,367 | | | | | $ | 101,419 | | | | | |
|
| | | | | A-7 | | | |
| | | | | A-7 | | | |
| | | | | A-7 | | | |
| | | | | A-8 | | | |
| | | | | A-8 | | | |
| | | | | A-8 | | | |
| | | | | A-8 | | | |
| | | | | A-9 | | | |
| | | | | A-13 | | | |
| | | | | A-14 | | | |
| | | | | A-15 | | | |
| | | | | A-15 | | | |
| | | | | A-15 | | | |
| | | | | A-15 | | | |
| | | | | A-15 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | A-16 | | | |
| | | | | A-16 | | | |
| | | | | A-17 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | A-18 | | | |
| | | | | A-19 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | A-20 | | | |
| | | | | | | ||
| | | | | A-21 | | | |
| | | | | A-21 | | | |
| | | | | A-22 | | | |
| | | | | A-22 | | | |
| | | | | A-22 | | | |
| | | | | A-23 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | A-24 | | | |
| | | | | | | ||
|
| | | | | A-26 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | | | ||
| | | | | A-28 | | | |
| | | | | A-28 | | | |
| | | | | | | ||
| | | | | A-29 | | | |
| | | | | A-29 | | | |
| | | | | | | ||
| | | | | A-31 | | | |
| | | | | A-31 | | | |
| | | | | A-31 | | | |
| | | | | | | ||
| | | | | A-32 | | | |
| ||||||||
| | | | A-33 | | | ||
| | | | | A-33 | | | |
| | | | | A-33 | | | |
| | | | | A-34 | | | |
| | | | | A-34 | | | |
| | | | | A-34 | | | |
| | | | | A-35 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | A-35 | | | |
| ||||||||
| | | | A-36 | | | ||
| | | | | A-36 | | | |
| | | | | A-36 | | | |
| | | | | A-39 | | | |
| | | | | | | ||
| | | | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| ||||||||
| | | | A-42 | | | ||
| | | | | A-43 | | | |
| | | | | A-43 | | | |
| | | | | A-43 | | | |
| | | | | A-44 | | | |
| | | | | A-44 | | | |
| | | | | A-44 | | | |
| | | | | A-45 | | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| ||||||||
| | | | A-48 | | | ||
| | | | | A-50 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | A-53 | | | |
| | | | | | | ||
| | | | | | |
| Pro-rated Cash Percentage = | | | Cash Percentage Aggregate Cash Election Percentage | |
| | | Stock Percentage Aggregate Stock Election Percentage | |
Name | | | Class of Shares | | | Number of Shares | |
| | | |||||
| | | | ||||
| Signature | | | Title | | | Date | |
| /s/ Dennis F. Beardslee | | | Director | | | | |
| /s/ | | | Director | | | | |
| /s/ Susan E. Hartley | | | Director | | | | |
| /s/ Mark A. Hughes | | | Treasurer and Chief Financial Officer | | | | |
| /s/ Bobbi J. Kilmer | | | Director | | | | |
| /s/ Leo F. Lambert | | | Director, Chairman | | | | |
| /s/ Terry L. Lehman | | | Director | | | | |
| /s/ Frank G. Pellegrino | | | Director | | | | |
| /s/ Timothy E. Schoener | | | Director | | | April 20, 2020 | |
| /s/ * J. Bradley Scovill | | | Director, President and Chief Executive Officer (Principal Executive Officer) | | | | |
| /s/ Leonard Simpson | | | Director | | |
| ||||||||
| /s/ Aaron K. Singer | | | Director | | | | |
| /s/ | | | | | |